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THE  LABOR  SPY 

RAC  K  LEO   HUBERMAN 


THE  LABOR  SPY 
RACKET 

by  LEO  HUBERMAN 

Here  are  the  facts  of  tyranny  in  America, 
a  tyranny  worse  than  that  which  drove 
George  Washington,  Jefferson,  Tom  Paine, 
John  Adams  and  the  other  Founding  Fa- 
thers to  revolution.  The  Labor  Spy  Racket 
records  the  testimony  produced  at  the  La- 
Follette  investigation,  revelations  of  indus- 
trial espionage,  company  police  brutality, 
unlawful  arrests,  murders,  secret  supplies  of 
ammunition  and  gases  to  be  used  against 
civilians,  and  other  outrages  that  shocked 
the  country  —  revelations  which  made 
headline  news  for  weeks. 

Mr.  Huberman,  well-known  writer  on 
labor  subjects,  was  in  Washington  during 
the  hearings  of  the  LaFollette  Civil  Liber- 
ties Committee,  and  he  has  made  a  notable 
condensation  of  the  first  eight  bulky  official 
volumes  of  testimony  and  evidence.  Here 
it  is.  You'll  find  it  dramatic  reading. 

MODERN  AGE  BOOKS,  Inc. 
155  East  44th  Street,  New  York 


From  the  collection  of  the 


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2006 


I 


The  Labor  Spy  Racket 


by  the  same  author 

"WE,  THE  PEOPLE" 

MAN'S  WORLDLY  GOODS 


The 
Labor  Spy  Racket 


BY  LEO  HUBERMAN 


MODERN  AGE  BOOKS,  INC.,  NEW  YORK 


COPYRIGHT   1937  BY  LEO  HUBERMAN 

All  rights  in  this  book  are  reserved,  and  it  may 
not  be  reproduced  in  whole  or  in  part  without 
written  permission  from  the  holder  of  these  rights. 
For  information  address  the  publishers. 

Composed  and  printed  in  the  United  States  of  America  by  Union  Labor 

AT  THE  RUMFORD  PRESS,  CONCORD,  NEW  HAMPSHIRE 

Typography  by  Robert  Josephy 


First  printing  September  1937 
Second  printing  September  1937 


To  Sybil,  Aileen,  and  Roger, 
staunch  trade  unionists 


CONTENTS 

i.  $80,000,000  a  Year  for  Spies  3 

ii.  Smash  the  Union !  9 

in.  Spies  at  Work  34 

iv.  The  Gentle  Art  of  Hooking  50 

v.  The  Rats'  Code  71 

vi.  Employers  Organize  105 

vn.  "The  American  Way"  139 

vin.  What  is  to  be  done?  157 


ILLUSTRATIONS 

Following  page 

Senate  Probers  Examine  "  Persuader  "  74 

"Six  Little  Pinks  Sitting  in  a  Row"  74 

Raymond  J.  Burns  and  W.  Sherman  Burns  74 

John  L.  Lewis  at  the  Hearings  74 

The  Frankensteen  Battle  (i)  106 

The  Frankensteen  Battle  (2)  106 

The  Frankensteen  Battle  (3)  106 

"Memorial  Day  Massacre "  at  Republic  Steel  106 


PREFACE 

MOST  of  the  material  in  this  book  is  based  on  the  evidence  intro- 
duced in  the  hearings  before  the  Subcommittee  of  the  Committee  on 
Education  and  Labor  of  the  United  States  Senate,  popularly 
known  as  the  La  Follette  Civil  Liberties  Committee.  The  hearings 
were  reported  in  the  press,  but  for  obvious  reasons  the  press  ac- 
counts could  not  be  full  enough.  The  complete  text  has  been  printed 
by  the  Government  Printing  Office  —  2,500,000  words  of  steno- 
graphic records  to  date,  published  in  eight  volumes  with  perhaps 
twice  that  number  still  to  come.  An  obvious  need,  lest  this  vitally 
important  material  be  buried  on  committee  shelves,  was  a  short 
book  that  would  fall  between  the  too-short  newspaper  account  and 
the  too-long  stenographic  record. 

I  have  tried  to  write  such  a  book.  My  task,  as  I  saw  it,  was  to 
become  thoroughly  familiar  with  the  complete  text  and  select 
therefrom,  and  then  organize,  those  highlights  that  tell  the  story. 
It  is  a  shocking  story.  It  is  a  story  which  should  shame  our  indus- 
trialists and  arouse  our  workers.  It  is  a  story  which  should  cause  all 
fair-minded  Americans  to  rise  up  in  their  wrath  and  demand  that 
immediate  steps  be  taken  to  prevent  what  has  happened  here  from 
ever  happening  again. 

Only  that  part  of  the  committee's  work  which  pertains  to  Labor 
Spies  is  dealt  with  in  these  pages.  The  related  topics  of  strike- 
breaking and  industry's  traffic  in  tear  gas  and  munitions  receive 
little  attention,  primarily  because  they  have  been  so  fully  treated  in 
/  Break  Strikes  by  Edward  Levinson,  and  because  it  was  important 
to  keep  the  book  as  short  and  simple  as  possible. 

I  am  deeply  indebted  to  the  following  for  their  advice  and  help: 
Max  Lerner,  David  J.  Saposs,  Edwin  S.  Smith,  and  my  wife. 

LEO  HUBERMAN 

New  York,  June  1937 


I.   $80,000,000  a  Year  for  Spies 


FOR  TEN  YEARS  Richard  Frankensteen  had  been  a  trimmer  in 
the  Dodge  plant  of  the  Chrysler  Corporation  in  Detroit.  He  had 
followed  in  the  footsteps  of  his  father  who  had  worked  for  the 
Dodge  Corporation  for  many  years  before  and  had  been  a  leader  in 
the  plant  band.  Frankensteen  was  popular  with  the  other  employees 
in  the  trim  division  and  in  1934  they  elected  him  as  their  repre- 
sentative in  the  Chrysler  Corporation  Representation  Plan.  At  a 
meeting  of  the  representatives  of  the  other  divisions,  Frankensteen 
was  elected  as  chairman  of  the  whole  section.  It  was  not  long  before 
he  and  the  other  representatives  learned  that  their  Works  Council 
had  definite  limitations:  collective  bargaining  under  this  company 
union  plan  meant  that  the  men  could  ask  for  and  get  better  lighting, 
a  larger  milk  bottle,  improved  ventilation,  and  similar  concessions. 
But  beyond  these  they  could  not  go.  When  it  came  to  collective 
bargaining  for  higher  wages,  shorter  hours,  seniority  rights,  etc., 
the  employee  representation  plan  failed  them. 

The  representatives  decided  to  get  together  and  call  meetings  of 
their  constituents  to  see  what  could  be  done.  The  outcome  of  these 
meetings  of  the  Chrysler  workers  was  the  formation  of  a  union  of 
their  own,  the  Automotive  Industrial  Workers  Association.  Four- 
teen locals  of  the  A.I.W.A.  were  organized  in  the  Dodge  plant  and 
Richard  Frankensteen  was  elected  president.  At  the  same  time, 
Frankensteen,  along  with  the  other  representatives,  continued  his 
services  in  the  Chrysler  employee  representation  plan.  The  workers 
had  both  a  company  union  and  their  own  union. 

Frankensteen  was  a  hardworking  president.  He  attended  the 
meetings  of  the  fourteen  locals  and  made  speeches  to  the  members. 
One  night  in  1934,  after  a  speech  to  the  members  of  the  paint  local, 

3 


4  THE  LABOR  SPY  RACKET 

Frankensteen  was  driven  home  in  the  car  of  the  vice  president  of  the 
local,  John  Andrews.  This  was  the  beginning  of  a  warm  friendship. 
Andrews  became  Frankensteen's  most  trusted  companion.  Richard 
wanted  more  than  anything  else  to  create  a  strong  union  composed 
of  militant  wideawake  members,  and  he  naturally  took  to  John  who 
was  fearless,  uncompromising,  and  able.  John  was  a  strong  union 
man;  he  harangued  the  men  for  hours  and  gave  them  courage  to  go 
out  on  strike  when  conditions  grew  too  bad;  he  was  the  leader  on 
the  picket  line;  he  drove  Richard  around  in  his  car  to  union  meet- 
ings at  any  and  all  hours.  Richard  felt  that  he  could  depend  on 
John  to  devote  every  moment  of  his  spare  time  to  the  formation  of 
that  powerful  body  of  militant  unionized  workers  which  was 
Richard's  sole  ambition. 

Both  men  were  married  and  had  two  children.  The  families, 
living  less  than  ten  blocks  apart,  became  very  friendly.  John's 
wife,  Dee,  and  her  two  children,  were  frequent  visitors  at  tKe 
Frankensteen  home.  While  Carol-Lee  and  Marilyn  Frankensteen 
played  with  Ronnie  and  Dale  Andrews,  Richard's  wife,  Mickey,  and 
Dee  Andrews  would  go  on  shopping  trips  together.  When  Dee  was 
sick  Mickey  brought  over  some  custard  she  had  made  and  took  care 
of  Ronnie  and  Dale.  On  another  occasion  John  and  Dee  drove 
Mickey  and  the  babies  to  and  from  her  parents'  home  in  Dayton, 
where  all  of  them  stayed  together  in  the  old  folks'  house  and  had  a 
grand  two  day  visit.  Five  nights  a  week  and  all  day  Sunday  the 
two  men  rode  around  together  busy  with  their  union  work,  but 
every  Saturday  night  was  set  aside  regularly  for  Fun  —  a  joint  good 
time  when  the  two  wives  with  their  husbands  met  for  dinner  and  the 
movies.  In  the  summer  of  1935  when  the  plant  was  shut  down  for  a 
few  weeks,  the  two  families  went  to  Lake  Orion  for  a  vacation. 
They  took  a  house  together  and  shared  expenses.  The  Andrews 
and  the  Frankensteens  were  firm  fast  friends  for  the  two  years 
following  that  night  in  1934  when  John  Andrews  first  shook  hands 
with  Richard  Frankensteen  after  his  speech  at  the  meeting  of  the 
paint  local. 

Tet  every  day  for  the  whole  period  of  tbeir friendship,  John  Andrews 


$80,000,000  A  YEAR  FOR  SPIES  5 

wrote  a  detailed  report  of  the  activities  of  bis  pal^  Dick  Frankensteen. 
John  Andrews  was  a  spy.  He  sent  his  reports  to  the  office  of  the 
Corporations  Auxiliary  Co.,  a  private  detective  agency  hired  by  the 
Chrysler  Corporation.  For  spying  on  his  friend  Frankensteen  and 
his  other  fellow  workers,  John  Andrews  was  paid  $40  a  month  by 
the  Corporations  Auxiliary.  For  the  services  of  its  spy,  L-392  (the 
code  number  of  John  Andrews),  Corporations  Auxiliary  billed  the 
Chrysler  Corporation  at  the  rate  of  $9.00  per  day.  And  for  the 
services  of  all  its  undercover  operatives  in  1935,  Corporations  Auxil- 
iary was  paid  by  the  Chrysler  Corporation  the  sum  of  $72,611.89. 
From  that  last  figure  —  the  payment  to  one  detective  agency  by 
one  corporation  in  one  year  —  it  becomes  obvious  that  the  story  of 
John  Andrews  and  Richard  Frankensteen  is  more  than  the  story  of  a 
friend  betrayed.  It  is  the  story  of  a  big  business.  John  Andrews  was 
one  operative  of  one  agency.  There  are  hundreds  of  agencies  employ- 
ing thousands  of  operatives  in  the  United  States.  There  are  agency 
chains  with  branch  offices  in  many  large  industrial  centers.  Their 
undercover  operatives  are  at  work  in  every  part  of  the  country  in 
every  industry.  It  is  impossible  to  obtain  exact  figures  for  either 
the  number  of  agencies  or  their  operatives.  They  operate  in  secret 
and  never  divulge  more  information  than  they  have  to  about  their 
business.  In  the  hearings  before  the  Subcommittee  of  the  Committee 
on  Education  and  Labor  of  the  United  States  Senate  —  the  La 
Follette  Civil  Liberties  Committee  —  they  were  very  unwilling  wit- 
nesses. They  lied  frequently  and  suffered  from  partial  and  complete 
loss  of  memory  throughout.  However,  Mr.  Heber  Blankenhorn, 
industrial  economist  on  the  National  Labor  Relations  Board,  was 
able  to  furnish  the  committee  with  a  list  he  had  compiled  after 
twenty  years  of  study  of  industrial  espionage.  Mr.  Blankenhorn  is 
the  foremost  authority  on  the  subject  in  the  United  States.  Here  is 
his  list  from  the  record: 

As  of  April  1936 

Total  agencies 230  [Turn  to  Appendix 

A  for  complete  list] 


6  THE  LABOR  SPY  RACKET 

Systems: 

Cities 
William  J.  Burns,  International  Detective  Agency,  Inc.   43 

Pinkerton's  National  Detective  Agency 35 

Railway  Audit   and   Inspection   Co.,   with   affiliates 

(known  to  be  incomplete) 18 

Corporations  Auxiliary  Co.  (known  to  be  incomplete)      8 
Sherman  Service,  Inc 9 

How  many  operatives  these  230  agencies  employ  is  still  a  mys- 
tery. Estimates  vary  from  40,000  for  all  of  them  to  135,000  for  just 
the  Burns,  Pinkerton,  and  Thiel  agencies  alone.  The  minimum 
figure  is  based  on  the  fact  that  there  are  some  41,000  union  locals 
in  the  United  States  and  it  is  estimated  that  there  is  a  spy  in  every 
local.  One  labor  leader  with  many  years  of  experience  states  that  he 
never  "knew  of  a  gathering  large  enough  to  be  called  a  meeting 
and  small  enough  to  exclude  the  spy." 

What  is  the  cost  to  industry  of  this  countrywide  spy  service? 
How  much  of  the  money  that  you  pay  for  the  milk  you  drink,  the 
car  you  drive,  the  clothing  you  wear,  the  furniture  you  use,  the  food 
you  eat,  went  to  paying  the  miserable  wages  of  the  stool-pigeons 
and  the  fabulous  salaries  of  the  agency  heads?  We  don't  know 
exactly,  but  even  the  lowest  estimate  will  astound  you.  Mr.  Blank- 
enhorn,  figuring  an  average  of  $175  a  month  paid  to  the  agency  per 
spy,  and  40,000  spies,  computes  the  minimum  cost  at  over  $80,- 
000,000  per  year!  That  this  is  probably  too  low  an  estimate  was 
indicated  in  the  hearings  before  the  committee  when  General 
Motors  officials  testified  that  their  plants  had  paid  to  Pinkertons 
alone,  $419,850.10,  for  the  period  from  January  1934  through  July 
1936;  and  that  they  paid  to  all  the  agencies  they  hired  in  that 
period  a  total  of  $994,855.68 !  Small  wonder  that  so  many  detective 
agencies  have  given  up  shadowing  criminals  and  have  turned  their 
attention  to  selling  what  they  euphemistically  call  their  "  industrial 
service."  They  have  found  that  there  is  more  money  in  industry 
than  in  crime. 


$80,000,000  A  YEAR  FOR  SPIES  7 

Who  are  the  clients  of  these  detective  agencies?  Here  is  a  partial 
list  of  the  customers: 

Employers'  associations 36 

Corporations  of  nationwide  scope 14 

Railroads 27 

Tractions,  utilities,  bus  companies 29 

Metallurgy  and  machinery 52 

Mining 32 

Auto  industry 28 

Clothing,  silk,  and  textile  mills 29 

Steamship  lines 20 

Radio  and  refrigerators 9 

Food 28 

Shoe  and  leather 1 1 

Building,  supplies,  etc 7 

Milling 8 

Department  and  clothing  stores 7 

Publishers  and  printing 5 

Real  estate 6 

Trucking,  delivery,  warehousing 17 

Lumber,  woodworking 3 

Hotels  and  theaters 9 

Banking,  trust  and  security 5 

Miscellaneous 47 

Total 429 

A  breakdown  of  that  list  will  reveal  some  names  of  companies 
which  are  well  known  to  you.  For  example,  among  the  499  clients  in 
19  states  of  the  Corporations  Auxiliary  Co.  in  the  period  1934-1936 
were  the  following: 

Aluminum  Co.  of  America  Crane  Co. 

American  Book  Co.  Diamond  Match  Co. 

Chrysler  Corp.  (23  plants)  Dixie  Greyhound  Lines 


8  THE  LABOR  SPY  RACKET 

Firestone  Tire  and  Rubber  Co.  Midland  Steel  Products  Co. 

General  Motors  Corporation  New  York  Edison  Co. 

and  subsidiaries  (13  plants)  Postum  Co. 

International  Shoe  Co.  Quaker  Oats  Co. 

Kellogg  Co.  Radio  Corp.  of  America 

Kelvinator  Corp.  Standard  Oil  Co. 
Statler  Hotels,  Inc. 

The  Pinkerton  Agency,  in  the  years  1933-1936,  "serviced"  these 
familiar  firms,  among  many  others: 

Abbott's  Dairies  Montgomery  Ward  &  Co. 

Bethlehem  Steel  Co.  National  Cash  Register  Co. 

Campbell  Soup  Co.  Ohrbach's  Affiliated  Stores 

Continental  Can  Co.  Pennsylvania  R.  R.  Co. 

Curtis  Publishing  Co.  Shell  Petroleum  Corp. 

Endicott- Johnson  Corp.  Sinclair  Refining  Co. 
Libbey-Owens  Ford  Glass  Co.        United  Shoe  Machinery  Corp. 

And  among  the  mutilated  records  of  the  Railway  Audit  and  In- 
spection Co.,  the  following  names  appeared: 

Borden  Milk  Co. 

Carnegie-Illinois  Steel  Corporation  f  subsidiaries  of 

H.  C.  Frick  Coal  and  Coke  Co.        \  United  States  Steel 

Consolidated  Gas  Co.  of  New  York 

Frigidaire  Corp. 

Jewish  Hospital,  Brooklyn,  N.  Y. 

Pennsylvania  Greyhound  Bus  Co. 

Western  Union 

Westinghouse  Electric  &  Manufacturing  Co. 

These  are  only  a  few  of  the  clients  of  three  of  the  agencies.  A 
complete  list  covering  all  the  agencies  would  contain  hundreds  of 
other  names.  Big  firms  and  small  firms,  old  firms  and  new  firms, 
famous  firms  headed  by  famous  people  and  unknown  firms  headed 
by  unknown  people  —  all  are  subscribers  to  the  "industrial  service" 
of  these  private  detective  agencies. 


II.   Smash  the  Union! 


NOW  $80,000,000  a  year  is  a  lot  of  money. 

When  the  detective  agencies  sell  their  industrial  service,  what  are 
they  selling  ?  What  do  their  customers  get  in  return  for  the  $80,000,- 
ooo  a  year? 

You  would  think  that  the  quickest  and  easiest  way  of  having  that 
question  answered  would  be  to  ask  the  people  who  buy  the  service 
and  the  people  who  sell  it.  Senator  La  Follette  and  Senator  Thomas 
tried  that.  But  they  found  that  this  was  a  peculiar  business.  The 
people  who  knew  most  about  it  wouldn't  talk.  They  were  very  secre- 
tive. They  destroyed  many  of  their  records.  Often  they  didn't  hear 
the  question  —  or  when  they  did  hear  it,  they  didn't  understand  it. 
They  beat  around  the  bush.  They  were  shifty  unwilling  witnesses. 
They  lied  frequently.  Nevertheless,  there  were  times  when  the 
evidence  was  so  overwhelming,  that  they  had  to  come  clean.  Backed 
into  a  corner  from  which  there  was  no  escape  they  had  to  confess  to 
the  truth.  And  bit  by  bit,  the  story  did  come  out.  Salvaged  records, 
indiscreet  letters,  confessions  by  spies,  confessions  by  operatives, 
admissions  by  plant  managers  —  all  were  piled  up  until  the  broad 
outlines  of  the  business  and  many  of  the  details,  were  clear.  We 
know  now  what  the  private  detective  agencies  sold. 

They  sold  a  unique  service  —  Union-Prevention  and  Union- 
Smashing.  Industrialists  who  bought  the  service  wanted  to  know 
about  their  workers'  attempts  to  organize.  They  paid  $80,000,000 
a  year  to  keep  their  plants  from  becoming  unionized,  or  if  they  were 
unionized,  to  break  up  the  union.  There  is  no  longer  any  doubt 
about  it.  The  record  is  clear. 

Here,  for  example,  is  part  of  a  letter  from  the  Foster  Service  to  a 
prospective  client: 

9 


io  THE  LABOR  SPY  RACKET 

Your  letter  of  July  28  is  received.  With  reference  to  your  in- 
quiry about  my  experience  and  what  I  am  prepared  to  do  in 
case  of  disturbance,  etc. 

First,  I  will  say  that  if  we  are  employed  before  any  union  or 
organization  is  formed  by  the  employees,  there  will  be  no  strike 
and  no  disturbance.  This  does  not  say  there  will  be  no  unions 
formed,  but  it  does  say  that  we  will  control  the  activities  of  the 
union  and  direct  its  policies,  provided  we  are  allowed  a  free 
hand  by  our  clients. 

Second.  If  a  union  is  already  formed  and  no  strike  is  on  or 
expected  to  be  declared  within  30  or  60  days,  although  we  are 
not  in  the  same  position  as  we  would  be  in  the  above  case,  we 
could  —  and  I  believe  with  success  —  carry  on  an  intrigue 
which  would  result  in  factions,  disagreements,  resignations  of 
officers,  and  general  decrease  in  the  membership. 

That's  plain  and  to  the  point.  Another  letter,  from  the  Marshall 
Detective  Service  Company  to  the  Red  Star  Milling  Company  of 
Wichita,  Kansas,  was  equally  precise.  It  is  especially  interesting 
because  in  it  the  agency  found  it  necessary  to  explain  something 
that  might  have  puzzled  the  client:  the  Red  Star  Company  was  pay- 
ing for  Union-Smashing,  yet  the  reports  it  received  from  the  agency 
showed  that  the  operative  was  about  to  become  an  officer  in  the 
union!  It  looked  like  the  doublecross,  but  the  agency  assures  the 
client  that  everything  is  O.K.: 

You  have  doubtless  learned  from  the  reports  that  our  No.  20 
is  likely  to  be  elected  Recording  Secretary  of  the  Local  in 
Wichita,  and  for  fear  that  you  may  not  understand  this  in  the 
right  light,  we  wish  to  advise  you  that  all  of  our  Operatives  are 
instructed  to  accept  the  office  of  Recording  Secretary  if  possi- 
ble; as  the  Recording  Secretary  has  nothing  to  do  with  agita- 
tion, simply  keeping  the  records  which  are  valuable  to  us,  and 
from  which  we  obtain  all  our  information.  You  will  understand 
that  if  No.  20  is  elected  to  this  office  he  will  be  in  a  position  to 
give  the  name  and  record  of  every  man  who  belongs  to  the 


SMASH  THE  UNION!  11 

union,  and  as  to  whether  or  not  he  pays  his  dues,  and  attends 
the  meetings  regular,  and  all  the  inside  information  that  we 
desire. 

The  only  office  in  the  Union  that  we  bar  our  men  from  ac- 
cepting is  that  of  Business  Agent.  The  Office  of  Business  Agent 
is  the  only  office  in  the  union,  which  can  harm  the  mills,  as  it  is 
the  duty  of  the  Business  Agent  to  induce  the  men  to  join  the 
Union,  and  as  it  is  not  our  policy  to  induce  men  to  join  the 
Union,  but  to  endeavor  to  keep  them  from  joining,  our  Opera- 
tives are  naturally  barred  from  accepting  the  office  of  Business 
Agent  .  .  . 

We  trust  that  you  will  fully  understand  this  matter  and  if 
No.  20  is  elected,  he  will  be  instructed  to  take  any  orders  from 
you  which  you  may  think  will  benefit  the  mill  and  endeavor  to 
carry  them  out  in  the  Union,  and  as  an  Officer  in  the  Local  his 
views  will  carry  more  weight  with  your  men  than  they  would 
otherwise. 

That  was  written  in  1919.  The  Foster  Service  letter  was  written 
in  1920.  Has  the  service  changed  much  since  then?  Not  very  much 
according  to  Mr.  James  H.  Smith,  president  of  the  Corporations 
Auxiliary  Co.  He  ought  to  know  because  he  has  been  in  the  business 
about  40  years.  Senator  La  Follette  asked  Mr.  Smith,  when  he  was 
on  the  witness  stand,  whether  there  had  been  many  changes  since 
he  originally  came  into  the  business.  Here  is  his  answer,  "Well, 
I  think  it  has  changed  slightly,  but  not  very  much.  We  have  gone 
into  the  efficiency  end  of  it  more  definitely  and  particularly  as  the 
years  have  gone  by." 

But  though  the  business  hasn't  changed  much  the  method  of 
describing  it  has.  The  agency  heads  no  longer  commit  themselves  as 
openly  as  they  once  did.  They  rarely  make  the  mistake  of  allowing 
themselves  such  complete  frankness  as  in  the  past.  In  1910  the 
Corporations  Auxiliary  Co.  could  inform  a  client  that  "wherever 
our  system  has  been  in  operation  for  a  reasonable  length  of  time, 
considering  the  purpose  to  be  accomplished,  the  result  has  been 


12  THE  LABOR  SPY  RACKET 

that  union  membership  has  not  increased,  if  our  clients  wished 
otherwise.  In  many  cases  local  union  charters  have  been  returned 
without  publicity  and  a  number  of  local  unions  have  been  dis- 
banded. We  help  eliminate  the  agitator  and  organizer  quietly  and 
with  little  or  no  friction." 

But  in  1937  Mr.  Smith  wasn't  writing  or  talking  so  plainly.  He 
was  much  more  guarded.  When  he  was  asked  to  describe  his  agen- 
cy's work  at  the  La  Follette  hearings,  he  talked  glibly  about  selling 
the  services  of  his  "industrial  engineers"  —  but  he  had  to  admit 
that  not  one  of  his  men  was  an  engineer.  Here  is  Mr.  Smith  on  the 
witness  stand: 

SENATOR  LA  FOLLETTE.  What  type  of  business  are  these  com- 
panies engaged  in,  Mr.  Smith? 

MR.  SMITH.  They  are  engaged  in  the  business  of  assisting 
manufacturers  in  increasing  and  improving  their  products  both 
in  quantity  and  quality  and  reducing  their  operating  costs. 
That  is  their  primary  business. 

SENATOR  LA  FOLLETTE.  And  how  is  that  accomplished? 

MR.  SMITH.  Well,  it  is  accomplished  on  a  very  simple  process. 
We  feel  that  in  order  to  get  efficiency  and  to  get  a  good  product 
the  first  thing  you  have  to  have  is  harmony,  if  you  can  possibly 
get  it,  because  without  harmony  you  get  no  efficiency  or  any- 
thing else,  and  therefore  we  sometimes  say  we  assist  in  harmon- 
izing conditions  in  a  plant. 

The  change  from  1910  is  apparent.  Then  you  knew  without  any 
question  what  service  Corporations  Auxiliary  performed.  In  1937, 
Mr.  Smith  uses  honeyed  words,  "we  assist  in  harmonizing  condi- 
tions in  a  plant."  That  sounds  nice  but  what  does  it  mean?  The 
testimony  of  Mr.  Herman  Weckler,  vice  president  and  general 
manager  of  the  De  Soto  Motor  Corporation,  a  Chrysler  subsidiary, 
gives  us  a  clue.  Remember  that  the  Chrysler  Corporation  was  Cor- 
poration Auxiliary's  biggest  customer: 

SENATOR  LA  FOLLETTE.  Did  you  receive  reports  and  did 
these  reports,  while  you  were  receiving  them,  give  information 


SMASH  THE  UNION!  13 

on  meetings  of  union  locals  in  which  employees  of  the  Chrysler 
plants  were  members  ? 
MR.  WECKLER.  Yes,  sir. 

SENATOR  LA  FOLLETTE.  Did  you  receive  reports  on  meetings 
of  the  district  council  of  the  United  Automobile  Workers? 

MR.  WECKLER.  I  think  I  have  seen  one  or  two  of  those,  yes. 

SENATOR  LA  FOLLETTE.  And  did  they  report  on  the  meetings 
of  the  Society  of  Designing  Engineers? 

MR.  WECKLER.  I  saw  reports  from  the  Society. 

SENATOR  LA  FOLLETTE.  Through  these  reports,  then,  it  is  a 
fair  statement  to  say  that  you  are  kept  fully  informed  as  to 
the  strategy  and  plans  of  these  locals  and  this  district  organi- 
zation, is  it  not? 

MR.  WECKLER.  Yes,  sir. 

If  you  want  convincing  proof  of  how  very  well  informed  Mr. 
Weckler  was  of  the  union  activities  of  the  auto  workers,  just  turn  to 
Appendix  B,  and  read  the  kind  of  detailed  spy  report  he  was  re- 
ceiving from  Corporations  Auxiliary.  From  Mr.  Weckler's  testi- 
mony and  from  this  sample  spy  report,  we  gather  that  Corporations 
Auxiliary's  1937  model  of  "harmonizing  conditions,"  was  in  no 
sense  different  from  its  1910  model  of  union-smashing. 

Mr.  Smith,  president  of  Corporations  Auxiliary,  was  an  unwilling, 
evasive  witness.  His  general  manager,  Mr.  Dan  Ross,  was  more 
willing  but  equally  slippery.  Mr.  Ross  picked  up  Smith's  "harmon- 
izing conditions,"  and  added  to  it  "promoting  efficiency"  as  his 
descriptive  term  for  the  spying  activities  of  his  stool-pigeons.  Like 
Smith,  Ross  was  careful  to  talk  all  around  the  subject  but  very  little 
directly  on  it.  But  both  Smith  and  Ross  were  long-winded  as  com- 
pared to  the  tight-lipped  Pinkertons.  The  heads  of  this  agency 
doing  a  million  dollar  a  year  business  could  remember  almost  noth- 
ing at  all,  and  what  they  did  remember  always  had  precious  little 
to  do  with  reporting  on  the  union  activities  of  their  clients'  workers. 


i4  THE  LABOR  SPY  RACKET 

One  afternoon  when  six  of  the  agency  heads  were  sitting  on  the 
stand  tossing  the  questions  around  to  one  another  in  their  usual 
fashion,  a  newspaper  man  sent  up  a  note  to  Mr.  Robert  Wohlforth, 
the  able  secretary  of  the  committee:  The  note  read, 
Six  little  Pinks  sitting  in  a  row. 
Six  little  Pinks  and  none  of  them  know. 
That's  bad  poetry  but  it's  good  reporting.  Judge  for  yourself: 

SENATOR  LA  FOLLETTE.  Mr.  Pinkerton,  will  you  take  a  look 
at  that  exhibit,  please  [Pinkerton  journal  sheet],  and  tell  me 
what  kind  of  information  you  would  say  the  agency  would  try 
to  get  for  the  United  States  Rubber  Reclaiming  Company? 

MR.  PINKERTON.  Information  dealing  with  sabotage,  theft  of 
material,  and  other  irregularities. 

SENATOR  LA  FOLLETTE.  What  would  you  include  under 
"sabotage"? 

MR.  PINKERTON.  Damage  to  company  property. 

SENATOR  LA  FOLLETTE.  Anything  else  ? 

MR.  PINKERTON.  No,  not  if  you  take  that  in  a  general  term. 

SENATOR  LA  FOLLETTE.  It  goes  on  to  say  "  also  thefts  of  ma- 
terial." That  is  pretty  obvious.  But  what  about  "and  other 
irregularities"?  What  would  you  say  that  includes? 

MR.  PINKERTON.  That  could  include  a  great  many  things. 

SENATOR  LA  FOLLETTE.  What  would  it  usually  include? 

MR.  PINKERTON.  Probably  discrimination,  favoritism  by  the 
minor  officials  in  the  plant,  and  violation  of  rules  and  regula- 
tions. 

[Senator  La  Follette  then  reads  a  report  of  a  Pinkerton  spy, 
dated  May  16,  1936,  describing  a  union  meeting*  attended  by 
some  workers  of  the  United  States  Rubber  Reclaiming 
Company,  Buffalo,  N.  Y.] 

SENATOR  LA  FOLLETTE.  Would  you  say  that  this  report  had 
to  do  with  investigation  of  sabotage  of  the  company's  property, 
theft  or  other  irregularities? 

*  Italics  here  and  throughout  the  book  are  the  author's. 


SMASH  THE  UNION!  i 

MR.  PINKERTON.  No,  Sir. 

SENATOR  LA  FOLLETTE.  What  would  you  say,  Mr.  Rossetter, 
about  that? 

MR.  ROSSETTER  [vice  president  and  general  manager].  I 
would  say  that  it  did  not  touch  those  points,  but  my  impression 
is  that  that  was  a  "Red"  organization.  I  am  not  familiar  with 
the  names  of  the  different  units  comprising  the  Communist 
Party  or  its  supporters,  but  that  report  would  cover  — 

SENATOR  LA  FOLLETTE  (interrupting).  Would  you  say  it  had 
anything  to  do  with  the  investigation  of  sabotage  of  the  com- 
pany's property,  theft  of  materials,  or  other  irregularities? 

MR.  ROSSETTER.  It  might  lead  to  sabotage  if  those  people 
were  the  kind  that  I  think  they  may  be  —  Communists. 

SENATOR  LA  FOLLETTE.  Now,  Mr.  Rossetter,  isn't  it  true  that 
the  description,  in  the  Pinkerton  journal,  of  sabotage,  theft  and 
irregularity,  often  actually  covers  up  investigations  to  be 
made  of  union  activities? 

MR.  ROSSETTER.  Well,  if  you  can  take  that  as  a  sample,  I 
will  have  to  say  "yes"  to  it  ... 

SENATOR  LA  FOLLETTE.  As  a  matter  of  fact,  did  not  the 
agency  undertake  to  report  on  the  activities  of  unions  within 
this  plant  and  organizational  efforts  of  the  client's  employees? 

MR.  ROSSETTER.  I  have  no  personal  knowledge  of  that,  Sena- 
tor. I  could  not  say  one  way  or  the  other. 

SENATOR  LA  FOLLETTE.  Do  you  know  about  it,  Mr.  Dudley? 

MR.  DUDLEY  [assistant  general  manager].  The  only  ones  who 
would  know  about  that,  I  presume,  would  be  the  division 
manager  and  the  superintendent. 

SENATOR  LA  FOLLETTE.  Do  you  think  the  client  would  know 
what  he  hired  you  for,  Mr.  Pinkerton? 

MR.  PINKERTON.  I  should  think  he  would;  yes,  sir. 

SENATOR  LA  FOLLETTE.  I  now  offer  an  exhibit.  It  is  a  letter 
from  L.  J.  Plumb,  of  the  United  States  Rubber  Reclaiming  Co, 
to  Charles  F.  Smith,  dated  August  5,  1935,  re  Pinkerton 


16  THE  LABOR  SPY  RACKET 

Agency.  It  is  on  the  stationery  of  an  interoffice  memorandum 
and  is  as  follows: 

"I  have  yours  of  the  2nd  in  reference  to  this  subject.  You  do 
not,  however,  tell  me  whether  they  have  given  you  any  in- 
formation of  value  or  importance. 

"What  have  their  reports  amounted  to? 

Very  truly  yours, 
U.  S.  RUBBER  RECLAIMING  Co.,  INC. 

L.  J.  Plumb,  President:9 

On  the  back  of  this  exhibit  ...  is  the  reply: 

8/6/35 

"Dear  Mr.  Plumb:  The  information  contained  in  the  Pinker- 
ton  reports  has  not  resulted  in  any  direct  saving  or  profit. 
They  cover  the  activities  of  both  unions  and  report  any  meet- 
ings or  other  activities  involving  our  employees  or  the  rubber 
workers  in  this  district.  As  stated  in  my  letter  of  August  2nd  I 
consider  this  about  the  best  arrangement  that  we  could  make 
for  being  informed  of  such  activities. 

C.  F.  SMITH" 

SENATOR  LA  FOLLETTE.  It  would  indicate  that  your  client, 
Mr.  Pinkerton,  was  actually  interested  in  organizational 
activities,  would  it  not? 

MR.  PINKERTON.  Yes,  sir;  it  would. 

SENATOR  LA  FOLLETTE.  And  it  is  obvious  that  your  Buffalo 
office  agreed  to  furnish  the  names  of  the  employees  of  the  client 
who  were  active  in  union  activities,  is  it  not? 

MR.  PINKERTON.  This  does  not  say  that  any  names  of  em- 
ployees are  being  furnished. 

SENATOR  LA  FOLLETTE.  Well,  did  they  furnish  that  informa- 
tion? 

MR.  PINKERTON.  I  do  not  know. 

SENATOR  LA  FOLLETTE.  Well,  let  us  read  this  next  exhibit: 


SMASH  THE  UNION!  17 

"Informant  reports: 

Tuesday,  March  19,  1935. 

"At  headquarters  of  the  Rubber  Workers'  Industrial  Union 
and  the  Trades  Union  Unity  League,  Charles  Doyle,  J.  J. 
Kissell,  Angello  Bustini,  and  several  other  members  were  heard 
to  say  a  meeting  of  the  employees  of  the  U.  S.  Rubber  Reclaim- 
ing Co.  was  held  secretly  at  Liberty  Hall,  Jefferson  and  Bristol 
Sts.,  last  evening,  which  was  well  attended  and  three  members 
enrolled. 

"It  was  learned  that  B.  Brewer,  Earl  Ericks,  John  Jackson, 
Willard  Dunsmore  and  Herbert  Zmanski,  all  employees  of  the 
U.  S.  Rubber  Reclaiming  Co.,  have  agreed  to  serve  on  the 
organization  committee." 

Now  the  fact  that  the  Pinkertons  thus  tried  in  every  way  to  con- 
ceal the  true  character  of  their  "industrial  service"  is  not  impor- 
tant. What  is  important  is  for  us  to  understand  what  the  nature  of 
that  work  was.  There  is  no  doubt  that  some  of  the  operatives  were 
indeed  reporting  on  "sabotage,  theft,  and  other  irregularities." 
There  is  also  no  doubt  that  many  of  the  operatives  were  reporting 
on  the  union  activities  of  the  workers.  The  record  shouts  the  story — 
spy  agencies  are  hired  primarily  for  the  purpose  of  keeping  the 
employer  informed  of  any  and  all  attempts  on  the  part  of  the  work- 
ers in  a  plant  to  better  their  conditions  through  organization;  and 
to  use  any  means,  fair  or  foul,  to  destroy  that  organization. 

For  further  proof  let  us  turn  to  the  testimony  of  the  men  who  did 
the  job,  the  spies  themselves.  Mr.  William  H.  Martin  was  a  Pinker- 
ton  operative  for  seven  years,  from  1928  to  1935.  Here  is  part  of  his 
sworn  testimony: 

SENATOR  THOMAS.  What  was  your  next  industrial  job,  Mr. 
Martin? 

MR.  MARTIN.  That  was  with  the  Harmony  Bus  Line,  Pitts- 
burgh, Pa. 

SENATOR  THOMAS.  Detailed  for  what  purpose? 

MR.  MARTIN.   Detailed  by  Mr.   Reed,  superintendent  at 


1 8  THE  LABOR  SPY  RACKET 

Pittsburgh,  to  ride  a  certain  man  named  McDonald,  who  was 
a  bus  driver  for  this  company,  ride  him  out  of  town  for  about  a 
40  minute  ride  to  Allison  Park.  I  was  to  get  acquainted  with 
him,  start  talking  to  him,  get  some  information  as  to  what  they 
were  doing,  whether  they  were  organizing,  who  the  men  were 
that  were  going  to  join  the  union,  anything  I  could  get  pertain- 
ing to  their  unionization. 

SENATOR  THOMAS.  Did  you  know  who  Mr.  McDonald  was? 

MR.  MARTIN.  I  had  heard  he  was  the  chairman  of  the  organiz- 
ing committee  for  this  company. 

SENATOR  THOMAS.  You  definitely  realized  you  were  on  a 
labor  spying  job  ? 

MR.  MARTIN.  YeS,  Sir. 

SENATOR  THOMAS.  Did  Reed  tell  you  why  he  wanted  the 
information  ? 

MR.  MARTIN.  Mr.  Reed  said  they  were  having  some  trouble 
over  there,  the  men  were  going  to  organize  and  the  company 
was  not  in  a  position  to  pay  union  drivers. 

SENATOR  THOMAS.  The  trouble  was  that  the  men  were  going 
to  organize? 

MR.  MARTIN.  YeS,  Sir. 

SENATOR  THOMAS.  That  was  conceded  as  a  trouble? 

MR.  MARTIN.  Yes,  sir;  and  they  wanted  some  information  to 
do  away  with  that. 

SENATOR  THOMAS.  What  kind  of  information  were  you  in- 
structed to  obtain,  definitely? 

MR.  MARTIN.  To  obtain  information  as  to  who  the  men  were 
that  were  going  to  join  the  union  .  .  . 

The  General  Motors  Corporation  and  its  subsidiaries  were  clients 
of  the  Pinkerton  Agency.  One  of  the  workers  in  the  Chevrolet  plant 
in  Atlanta,  Georgia,  was  Mr.  Lyle  Letteer,  the  son  of  the  assistant 
superintendent  of  the  Atlanta  office  of  the  Pinkerton  agency.  In 
April  1934  he  was  employed  as  a  Pinkerton  spy  while  continuing 


SMASH  THE  UNION!  19 

his  work  in  the  plant.  Mr.  Letteer  was  instructed  to  join  the  union 
and  report  on  its  financial  condition,  its  paid-up  members,  and  the 
names  of  the  Chevrolet  employees  who  were  union  members.  He 
was  told  to  get  himself  elected  as  an  officer  in  the  union  and  make  a 
detailed  report  on  its  secret  meetings.  In  the  summer  of  1935  he  was 
able  to  perform  a  major  stroke  as  a  spy.  The  other  officers  of  the 
union  were  attending  a  convention  in  Detroit  and  Mr.  Letteer 
was  left  in  charge  of  the  office.  What  a  break!  That  he  made  the 
most  of  his  opportunity  is  plain  from  his  sworn  testimony: 

SENATOR  LA  FOLLETTE.  Did  you  take  advantage  of  that 
situation  of  being  left  as  the  sole  person  in  charge  and  responsi- 
ble for  these  records,  to  make  use  of  them  for  Pinkerton? 

MR.  LETTEER.  I  took  advantage  to  this  extent,  that  after  ask- 
ing Littlejohn  [Pinkerton  superintendent]  what  he  wanted  to 
know  and  receiving  his  answer,  I  went  to  the  labor  office  and  as 
I  was  going  to  close  up  for  the  night  I  would  take  all  the  rec- 
ords, including  the  ledger  and  everything,  whatever  he  called  for 
for  that  day,  take  it  to  the  office,  and  we  would  make  copies 
that  night. 

SENATOR  LA  FOLLETTE.  You  mean  to  the  Pinkerton  office? 

MR.  LETTEER.  Yes,  Sir. 

SENATOR  LA  FOLLETTE.  Then  you  returned  the  records  to  the 
office  the  next  morning? 

MR.  LETTEER.  Returned  the  records  to  the  office  next  morning. 

SENATOR  LA  FOLLETTE.  State,  if  you  know,  what  use  the 
Pinkerton  Agency  made  of  all  this  information  that  you  were 
able  to  get  as  a  result  of  your  position  of  trust  in  this  union? 

MR.  LETTEER.  The  exact  use  of  it  I  could  not  say  but  it 
seemed  to  be  pretty  hot  as  far  as  Littlejohn  would  say. 

The  scene  now  shifts  to  Michigan.  Pinkerton  still  on  the  job  for 
General  Motors.  Mr.  Lawrence  Barker  of  Detroit  is  taken  on  as  a 
Pinkerton  spy  (after  a  few  months,  he  confessed  to  the  union 
officials  and  two  letters  are  in  the  record  attesting  their  faith  in 
him)  and  is  planted  in  the  Fisher  Body  factory  in  Lansing.  His 


20  THE  LABOR  SPY  RACKET 

superior  officer  is  Mr.  R.  S.  Mason,  assistant  superintendent  of  the 
Detroit  office  of  the  Pinkerton  Agency.  We  learn  from  Mr.  Mason's 
talks  with  Mr.  Barker  that  pinching  the  records  from  a  union  office 
is  only  one  way  of  keeping  tab  on  union  activities  —  there  are  other 
Pinkerton  methods,  equally  efficient.  Here  is  Mr.  Barker  on  the 
witness  stand: 

SENATOR  LA  FOLLETTE.  In  these  discussions  that  you  had 
with  Mr.  Mason,  did  you  get  the  impression  or  did  you  know 
that  he  knew  a  good  deal  about  the  activities  of  the  interna- 
tional union,  as  well  as  the  various  locals? 

MR.  BARKER.  He  did  seem  to  know  quite  a  bit  about  the 
activities  of  the  international. 

SENATOR  LA  FOLLETTE.  Did  he  ever  tell  you  how  he  happened 
to  know  so  much  about  the  union  and  its  activities? 

MR.  BARKER.  Yes,  sir,  he  said  that  they  had  a  dummy  office 
in  the  Hoffman  Building  [United  Automobile  Workers  Asso- 
ciation headquarters  in  Detroit],  that  the  telephone  there  was 
tapped,  and  also  President  Martin's  telephone  was  tapped  at 
his  home.  That  they  knew  everything  about  him  and  every 
move  they  would  make. 

SENATOR  LA  FOLLETTE.  Mr.  Barker,  as  the  result  of  your  ex- 
perience as  an  undercover  operator,  informant  and  spy,  what  is 
your  impression  about  the  effectiveness  or  lack  of  effectiveness 
of  this  labor  espionage  work  in  breaking  up  or  preventing 
unions,  genuine  labor  unions,  from  organizing? 

MR.  BARKER.  It  is  very  effective,  especially  in  the  local  to 
which  I  belonged  .  .  .  One  time  at  Lansing-Fisher  they  were 
almost  i oo  per  cent  organized.  And  finally  it  went  down  to 
where,  as  I  said,  there  were  only  five  officers  left. 

SENATOR  LA  FOLLETTE.  You  attribute  that  to  undercover 
operatives  ? 

MR.  BARKER.  Yes;  I  do. 


SMASH  THE  UNION!  21 

Mr.  Barker  testifies,  from  experience,  that  labor  espionage  has 
been  very  effective  in  breaking  up  unions.  He  gives,  as  an  example, 
the  smashing  of  the  Lansing-Fisher  local.  Affidavits  of  similar  hap- 
penings in  other  unions  are  strewn  throughout  the  pages  of  the 
record.  From  the  testimony  of  Robert  Travis,  organizer  for  the 
United  Automobile  Workers,  the  committee  learned  of  a  Federal 
Labor  Union  in  Flint,  which  had  shrunk  from  a  membership  0/26,000 
in  /PJ5,  to  122  in  1036  —  wrecked  by  union  officials  who  were  spies. 

The  spy  who  has  become  an  official  in  the  union  is,  of  course,  in  a 
key  position  to  wreak  havoc  with  the  organization.  The  more 
capable  he  is,  the  more  dangerous  he  is.  Some  spies  have  been  able 
to  reach  the  top  —  and  all  the  way  up  they  have  been  doing  their 
deadly  work.  William  Green,  president  of  the  A.  F.  of  L.,  testified 
that  a  spy  named  L.  E.  Woodward  had  become  president  of  the 
Savannah  Trades  and  Labor  Council,  vice  president  of  the  Georgia 
Federation  of  Labor  for  4  years,  and  had  even  been  nominated  for 
president  at  the  state  convention  of  the  A.  F.  of  L.  !  His  reports, 
meanwhile,  went  regularly  through  the  Pinkerton  Agency  to  the 
Savannah  Electric  and  Power  Company,  and  probably,  to  every 
other  company  in  Georgia  that  subscribed  to  the  Pinkerton 
service. 

The  extent  to  which  labor  unions  are  infected  with  the  plague  of 
spies  is  so  widespread  as  almost  to  exceed  belief.  If  some  of  the 
authentic  tales  had  been  invented  they  could  not  have  sounded 
more  fantastic.  The  following  story,  however,  has  been  proven  true: 
in  November  1935,  the  American  Federation  of  Labor,  in  an  effort 
to  collect  all  the  information  it  could  about  spies,  sent  a  question- 
naire to  its  locals  throughout  the  country.  Here  are  the  questions 
asked  and  the  answers  received  from  Local  18920,  in  Hartford, 
Conn.: 

American  Federation  of  Labor  Questionnaire  November  30, 


i  .  What  spy  and  strikebreaking  agencies  operate  in  your  ter- 
ritory  or   industry?  —  A.    Pinkerton's   National    Detective 


22  THE  LABOR  SPY  RACKET 

Agency,  R.  W.  Bridgman  Detective  Bureau,  Hartford  Private 
Detective  Bureau  (listed  from  phone  directory). 

2.  Which  are  most  active  since  the  passage  of  the  Wagner 
Act  ?  —  A.  No  knowledge. 

3.  Give  names  of  agencies,  addresses  and,  if  possible,  names 
of  chief  officers.  —  A.  See  no.  I. 

4.  How  many  operatives  or  spies  do  agencies  have  ?  —  A. 
No  knowledge. 

5.  What  exposures  of  spies  among  your  membership  have 
been  made  by  your  union?  Or  in  the  courts?  —  A.  None  in  our 
local.  One  employee  of  Fuller  Brush  Company  exposed  as  spy. 

6.  If  possible,  give  full  account  of  facts.  —  A.  All  facts  in 
possession  of  President  W.  Kuehnel,  Hartford  Central  Labor 
Union. 

7.  What  activities  are  spy  agencies  carrying  on?  —  A.  No 
knowledge. 

8.  Have  they  organized  'citizens*  committees'?  —  A.  Not 
to  my  knowledge. 

9.  What  industrial  concerns  are  known  to  have  employed 
spy  agencies  ?  —  A.  Fuller  Brush  Company. 

10.  What  precise  information  have  you  as  to  large  industrial 
concerns'  own  spy  system  ?  —  A.  None. 

11.  Which  agencies  at  present  supply  strikebreakers?  How 
many  have  they  recruited  (give  instances)  ?  —  A.  None,  to 
best  of  my  knowledge. 

Re  resolution  no.  168. 

Name  of  union:  Typewriter  Workers  Local  No.  18920. 

Secretary:  F.  A.  Roszel. 

Address:  2  Wolcott  Avenue,  Wilson,  Conn. 

Notice  that  the  secretary  of  this  Hartford  local  is  not  very  helpful 
—  more  than  half  the  questions  are  answered  "no  knowledge." 
This  reply  was  received  at  A.  F.  of  L.  headquarters  on  December 
n,  1935.  One  week  later  the  picture  of  Mr.  F.  A.  Roszel,  the  secre- 
tary of  the  local,  was  published.  He  was  a  spy.  When  he  came  to 


SMASH  THE  UNION!  23 

Hartford  in  1934,  the  paid  membership  of  the  local  of  which  he  later 
became  secretary  was  2500.  In  less  than  one  year,  the  paid  member- 
ship had  dropped  to  75,  with  a  regular  attendance  of  not  more  than 
8  or  10  members!  Mr.  Roszel  had  done  a  swell  job  for  the  Interna- 
tional Auxiliary  (a  subsidiary  of  Corporations  Auxiliary). 

There  is  bitter  irony  in  this  story  of  an  A.  F.  of  L.  questionnaire 
on  spies  being  answered  by  a  union  secretary  who  was  himself  a 
spy.  Equally  ironical  —  and  significant  —  was  the  evidence  given 
by  Mr.  Matthew  Smith,  general  secretary  of  the  Mechanics  Educa- 
tional Society  of  America,  a  union  of  tool  and  die  makers,  to  Presi- 
dent Roosevelt's  joint  N.R.A.  and  Labor  Department  inquiry  into 
employment  stabilization.  The  New  Tork  Times  of  December  17, 

1934,  reported  Mr.  Smith  as  testifying  that  "several  weeks  ago  he 
had  inadvertently  lost  a  copy  of  the  minutes  of  his  union  meeting 
and  he  had  received  an  even  more  detailed  statement  of  what  had 
transpired  at  the  meeting  from  a  detective  agency  which  had  *  cov- 
ered' the  meeting  through  its  own  operative"! 

Was  it  merely  a  coincidence  that  of  the  30  operatives  employed 
out  of  the  Cleveland  office  of  Corporations  Auxiliary  in  November 

1935,  "23  were  members  of  unions,  2  were  not  members  of  unions 
at  the  plant,  and  the  remaining  5  were  non-union  men  employed  at 
plants  where  no  union  had  been  organized"? 

The  Pinkertons,  according  to  a  schedule  they  themselves  sub- 
mitted to  the  committee,  did  not  have  as  high  a  percentage  of  their 
operatives  in  unions,  but  what  their  operatives  lacked  in  union 
affiliations,  they  made  up  in  influence  as  high  ranking  union  officials. 

The  summary  of  this  schedule,  prepared  by  Pinkerton's  Na- 
tional Detective  Agency,  Inc.  [March  16,  1937]  is  as  follows: 
Total  number  of  secret  sources  carried  under  arbitrary  or 
secret  designations  —  303. 
Of  this  number, 

132  are  members  of  trade  unions, 

43  are  members  of  company  unions  or  employee  repre- 
sentation plans. 


24  THE  LABOR  SPY  RACKET 

Of  those  who  are  members  of  trade  unions 
6  hold  office  as  president 

5  "          "    "  vice  president 
i  holds      "    "  treasurer 

3  hold        "    "  secretary 

9  "  recording  secretary 

6  "          "    "trustee 

i  holds  "  business  agent 

3  hold  "  organizer 

3  "  delegates  to  the  central  labor  union 
i  holds  "  chairman  shop  committee 

4  hold  "  commit teemen 

i  holds  "  financial  secretary 

3  hold  "  members  of  executive  board 

i  holds  "  division  chairman 

Of  those  who  are  members  of  company  unions  or  employee 
representation  plans 

i  holds  office  as  president 

3  hold        "     "  recording  secretary 

i  holds      "     "  chairman 

i  holds      "     "  department  representative 

Forty-seven  Pinkerton  spies,  or  more  than  %  of  the  total  number 
in  trade  unions,  according  to  their  own  list,  hold  office  in  the  union. 
Is  there  any  question  that  spy  agencies  are  hired  primarily  for 
Union-Prevention  and  Union-Smashing  ? 

In  any  case,  of  one  thing  we  may  be  certain — employers  who  buy 
the  service  of  the  agencies  know  what  they  are  paying  for.  And 
when  rthe  agency  can't  deliver  the  goods,  or  where  workers  are  not 
organizing,  then  the  service  is  discontinued.  Corporations  Auxiliary 
found  that  out.  On  July  6,  1936,  one  of  its  salesmen,  D-H,  wrote  a 
letter  to  his  head  office  telling  of  a  conversation  he  had  had  with 
Mr.  F.  W.  Marcolin,  the  Store  Superintendent  of  the  Bailey  Com- 
pany in  Cleveland.  Mr.  Marcolin  told  him  that  the  Bailey  Company 
was  going  to  discontinue  the  service  of  Corporations  Auxiliary. 


SMASH  THE  UNION!  25 

D-H  asked  him  why  "and  he  stated  they  did  not  think  at  the  pres- 
ent time  the  expense  was  justified  and  the  information  they  were 
receiving  was  not  worth  $200.00  a  month.  Said  they  had  no  com- 
plaint about  the  service  but  the  operator  had  not  gotten  into  the 
union  and  all  the  information  he  was  able  to  gather  covered  daily 
routine.  Some  suggestions  had  been  good  but  not  worth  the  expense, 
also  there  was  apparently  no  union  activity  and  they  had  decided  to 
discontinue" 

The  Pinkerton  agency  met  with  a  similar  unhappy  experience. 
They  found  that  employers  were  not  interested  in  their  spy  service 
unless  they  could  take  some  action  on  the  organizational  activities 
of  their  workers.  Mr.  Meinbress,  the  superintendent  of  the  San 
Francisco  Pinkerton  office,  reported  the  sad  news  he  had  received 
from  the  general  manager  of  the  Western  Pacific  Railroad: 

Former  client,  friendly,  said  under  the  Eastman  control  they 
cannot  discharge  for  labor  activities,  he  knows  pretty  well  who 
the  agitators  are  but  cannot  help  himself  so  does  not  believe  in 
spending  money  at  present  for  secret  work  when  he  cannot  act  on 
the  information.  I  will  keep  up  contact. 

J.  C.  MEINBRESS, 
Official,  San  Francisco  Office. 

SENATOR  LA  FOLLETTE.  Now  apparently  from  this  solicitor's 
report,  while  Mr.  Eastman  was  coordinator,  Mr.  Meinbress 
found  that  under  that  situation  employees  of  railroads  are  ex- 
tended the  same  protection  of  the  Wagner  Labor  Relations 
Act,  since  it  extends  to  all  employees,  did  he  not,  Mr.  Pinker- 
ton? 

MR.  PINKERTON.  Yes,  sir;  it  appears  so. 

SENATOR  LA  FOLLETTE.  So  it  would  appear  from  this  super- 
intendent's report  that  when  your  clients  cannot  discharge  men 
for  union  activities,  they  have  no  use  for  your  services,  is  that 
right? 

MR.  PINKERTON.  I  don't  think  that  is  always  true;  no,  sir. 


26  THE  LABOR  SPY  RACKET 

SENATOR  LA  FOLLETTE.  I  did  not  ask  you  if  it  was  not  always 
true.  I  asked  you  if  it  was  not  true. 

MR.  PINKERTON.  It  appears  from  this  report  to  be  true. 

Had  all  employers  of  labor  been  as  careful  to  obey  the  law  as  the 
general  manager  of  the  Western  Pacific,  then,  in  truth,  the  Pinker- 
tons  would  have  been  in  a  bad  way.  But  fortunately  for  the  Pinker- 
tons,  this  was  not  the  case.  Just  as  the  Railway  Labor  Act  extended 
protection  to  railway  employees  so  the  National  Labor  Relations 
Act  (popularly  known  as  the  Wagner  Act),  extended  that  protec- 
tion to  other  workers  in  July  1935.  The  intent  of  Congress  in  passing 
the  Wagner  Act  is  plain,  the  language  is  simple  and  easy  to  under- 
stand: 

Sec.  7.  Employees  shall  have  the  right  to  self-organization, 
to  form,  join,  or  assist  labor  organizations,  to  bargain  collec- 
tively through  representatives  of  their  own  choosing,  and  to 
engage  in  concerted  activities,  for  the  purpose  of  collective  bar- 
gaining or  other  mutual  aid  or  protection. 

Sec.  8.  It  shall  be  an  unfair  labor  practice  for  an  employer  — • 
(i)  To  interfere  with,  restrain,  or  coerce  employees  in  the 
exercise  of  the  rights  guaranteed  in  section  7. 

It  was  a  similar  provision  in  the  Railway  Labor  Act,  plus  the 
power  of  the  strong  railway  unions,  which  kept  the  Western  Pacific 
from  hiring  the  Pinkertons.  But  many  other  employers  throughout 
the  country  felt  no  such  restraint.  They  did  hire  the  Pinkertons  and 
other  agencies.  And  they  did  "interfere  with,  restrain,  or  coerce 
employees"  in  the  exercise  of  their  right  to  join  unions.  These 
employers  were  advised  by  eminent  lawyers  that  they  need  not  pay 
any  attention  to  the  Wagner  Act  because  in  their  august  opinion, 
the  Act  was  unconstitutional.  The  National  Committee  of  Lawyers 
of  the  American  Liberty  League,  for  example,  took  it  upon  itself  to 
declare  the  Act  unconstitutional.  The  Supreme  Court  of  the  United 
States,  however,  thought  otherwise.  On  April  12,  1937  the  Court 
declared  the  National  Labor  Relations  Act  constitutional.  The  58 
Liberty  League  Lawyers  were  in  error. 


SMASH  THE  UNION!  27 

One  of  the  5  cases  that  reached  the  Supreme  Court  in  the  Wagner 
Act  decision  was  the  Fruehauf  Trailer  Co.  case.  Unlike  the  Western 
Pacific,  the  management  of  this  company  felt  that  it  did  have  the 
right  (despite  the  Wagner  Act)  to  discharge  "agitators",  i.e., 
union  men.  So  it  hired  the  Pinkerton  agency  to  spy  on  its  workers. 
The  Pinkertons  obliged.  On  complaint  of  the  union,  the  members 
of  the  National  Labor  Relations  Board  examined  the  evidence  and 
came  to  this  conclusion:  "The  Board  found  that  the  workers  had 
been  discharged  because  of  their  union  activity  and  that  the  com- 
pany's policy  was  to  disrupt  the  local  of  the  United  Automo- 
bile Workers  Federal  Labor  Union  and  so  to  defeat  collective 
bargaining." 

How  was  this  done?  Excerpts  from  the  Board  report  show  the 
steps.  First,  Martin,  a  Pinkerton  spy  is  given  employment  in  the 
plant.  "He  thereafter  joined  the  union  and  eventually  became  its 
treasurer.  He  was  thus  able  to  procure  a  list  of  all  the  members  of 
the  union.  He  made  reports  more  than  once  a  week  to  the  respond- 
ent [Fruehauf  Trailer  Co.],  and  the  lists  of  members  which  he 
furnished  were  given  to  the  respondent's  superintendent,  Halpin. 
With  these  lists  in  his  hand  Halpin  went  about  the  factory  from 
time  to  time  and  warned  various  employees  against  union  activities. 
The  result  of  Martin's  activities  caused  suspicion,  unrest,  and  con- 
fusion among  the  employees  .  .  .  Completely  armed  by  Martin 
with  the  necessary  information  the  respondent  determined  to  put  a 
stop  to  all  attempts  on  the  part  of  its  factory  workers  to  form  an 
efficient  independent  bargaining  agency,  and  in  furtherance  of  that 
purpose  summarily  discharged  nine  men  and  threatened  three 
others  with  discharge  ...  As  to  the  discharges  we  find:  Nicholas 
Trusch  was  employed  as  a  carpenter  in  the  body  shop  of  the  re- 
spondent for  five  and  a  half  years  and  had  a  good  record,  no  fault 
ever  having  been  found  with  his  work  or  conduct.  His  foreman, 
Rosenbusch,  asked  him  on  July  15,  1935,  'Do  you  want  your 
job  or  your  union?'  When  Trusch  replied  that  he  would  not  give  up 
the  union  he  was  discharged  between  9  and  10  in  the  morning  of 
the  same  day  .  .  .  We  find  that  Trusch  was  discharged  for  the 


28  THE  LABOR  SPY  RACKET 

reason  that  he  joined  and  assisted  the  union."  The  Board  takes  up 
the  cases  of  the  nine  men,  one  by  one,  and  its  closing  sentence  is  the 
same  every  time,  "discharged  for  the  reason  that  he  joined  and 
assisted  the  union."  Here  in  graphic  detail,  in  this  N.L.R.B.  re- 
port, is  the  story  of  industrial  espionage. 

Not  the  whole  story,  however.  There's  one  other  angle.  The  dis- 
charged men  can  find  no  other  jobs  —  they  are  blacklisted  every- 
where, because  they  dared  to  join  the  union.  They  are  thrown  on 
the  public  relief  rolls.  Let  Mr.  Edwin  S.  Smith,  member  of  the 
N.L.R.B.  appointed  by  the  President,  tell  the  tale:  "I  have  never 
listened  to  anything  more  tragically  un-American  than  stories  of 
the  discharged  employees  of  the  Fruehauf  Trailer  Co.,  victims  of  a 
labor  spy.  Man  after  man  in  the  prime  of  life,  of  obvious  character 
and  courage,  came  before  us  to  tell  of  the  blows  that  had  fallen  on 
him  for  his  crime  of  having  joined  a  union.  Here  they  were  — 
family  men  with  wives  and  children  —  on  public  relief,  blacklisted 
from  employment,  so  they  claimed,  in  the  city  of  Detroit,  citizens 
whose  only  offense  was  that  they  had  ventured  in  the  land  of  the 
free  to  organize  as  employees  to  improve  their  working  conditions. 
Their  reward,  as  workers  who  had  given  their  best  to  their  employer, 
was  to  be  hunted  down  by  a  hired  spy  like  the  lowest  of  criminals 
and  thereafter  tossed  like  useless  metal  on  the  scrap  heap." 

You  can  see  from  the  tone  of  his  testimony  that  Mr.  Smith  is 
angry  because  he  thinks  an  injustice  was  done.  He  was  disturbed, 
too,  because  he  saw  in  labor  espionage  a  danger  to  our  democratic 
institutions.  He  said  as  much  at  this  hearing  in  April  1936.  That 
was  before  the  sit-down  strike  at  General  Motors  and  Chrysler 
occurred,  and  it  should  be  full  of  meaning  to  those  people  who 
cannot  understand  why  American  workers  have  become  so  militant. 
Here  is  Mr.  Smith's  warning,  "The  aims  of  one  group  may  be 
cordially  detested  by  another,  but  for  the  stronger  group  to  suppress 
the  minority's  right  to  express  its  opinion  is  to  suppress  democracy 
itself.  Those  who  would  encroach  upon  the  civil  liberties  of  any 
group  are  playing  with  dangerous  and  destructive  fire.  Democ- 
racy may  be  attacked  from  the  right  as  well  as  from  the  left.  The 


SMASH  THE  UNION!  29 

denial  of  civil  liberties  is  itself  an  important  step  toward  revolu- 
tion." 

It's  a  familiar  and  oft-repeated  story  —  this  suppression  by  the 
stronger  group,  of  the  workers'  right  to  organize.  In  Duquesne,  in 
1919,  the  minute  any  labor  organizers  stepped  into  the  town  they 
were  clapped  into  jail.  The  mayor  there  boasted  that  no  union 
could  hold  a  meeting  in  Duquesne  even  if  Jesus  Christ  were  the 
organizer.  And  in  Homestead,  in  1933,  Secretary  of  Labor  Perkins 
found  that  the  streets  and  parks  and  halls  were  closed  to  her  —  the 
only  place  she  could  meet  with  a  committee  of  steel  workers  was  in 
the  U.  S.  Post  Office !  This  sort  of  thing  is  still  true  in  many  parts 
of  the  United  States  in  1937  —  in  spite  of  the  Wagner  Act.  Unfortu- 
nately we  cannot  devote  adequate  space  in  these  pages  to  these 
open  violations  of  the  workers'  right  to  organize.  Here  we  are  con- 
cerned with  the  undercover  violations,  the  wrecking  of  unions 
through  the  use  of  spies,  as  in  the  Fruehauf  Trailer  Co.  case. 

You  can  easily  imagine  what  the  effect  of  industrial  espionage  has 
been  on  the  workers.  They  don't  have  to  read  about  stool-pigeons 
to  know  about  them  —  they  know  about  them  from  sad  experience. 
It  is  for  that  reason  that  many  of  them  who  see  the  necessity  for 
joining  a  union,  hesitate  to  do  so.  They  are  afraid.  George  A.  Pat- 
terson, a  steel  worker,  told  the  committee,  "  that  there  is  an  espion- 
age system  in  the  steel  plants  ...  is  common  talk  amongst  the 
employees  at  all  times.  They  know  it,  and  they  feel  it.  They  feel 
that  at  all  times  they  are  being  watched.  As  we  have  tried  to  organ- 
ize, many  a  man  would  say  'We  would  like  to  come  in,  but  it  is  just 
as  much  as  our  job  is  worth  to  join  up.'  They  have  said  that  many 
times.  I  can  say  that  they  are  truthful  in  their  opinion  about  that, 
because  when  we  go  around  with  the  applications  and  ask  the  men 
to  come  into  the  organization  they  talk  about  stool-pigeons,  and 
so  on." 

Only  through  organization  into  unions  can  the  workers  protect 
their  own  interests.  When  N.I.R.A.  gave  them  this  right  in  1933, 
the  employers  fell  back  on  an  old  scheme  to  take  the  teeth  out  of 
such  organizations.  "The  men  have  a  right  to  organize?  O.K.  Let 


30  THE  LABOR  SPY  RACKET 

them  organize.  We  will  even  help  them  —  we'll  give  them  a  plan 
for  organization  and  put  up  the  money  to  foot  the  bill.  We'll  back 
the  men  to  the  limit  in  forming  unions  —  company  unions." 

It  was  truly  amazing  with  what  speed  company  unions  sprang 
into  existence  in  industries  hitherto  unorganized.  N.I.R.A.  was 
passed  June  16,  1933.  Before  the  end  of  the  month  plans  for  the 
formation  of  company  unions  were  announced  in  the  plants  of 
U.  S.  Steel,  Republic  Steel,  Weirton  Steel,  and  Jones  and  Laughlin. 
The  automobile  industry  showed  the  same  lightning-like  speed  in 
the  organization  of  company  unions.  The  N.R.A.  code  in  autos 
was  approved  on  August  27,  1933.  Ten  days  before,  Chevrolet, 
Buick,  Fisher  Body  and  other  General  Motors  subsidiaries  had 
perfected  their  "representation"  plans;  the  Chrysler  Corporation 
followed  in  October. 

From  all  this  undue  haste,  and  from  the  fact  that  the  employers 
were  behind  the  company  union  plans,  it  becomes  obvious  even  to 
people  inexperienced  in  labor  matters,  that  there  must  be  some- 
thing fishy  about  company  unions.  There  is.  In  a  study  called 
"The  Economics  of  the  Iron  and  Steel  Industry,"  financed  jointly 
by  the  Brookings  Institution  and  the  Falk  Foundation,  one 
sentence  gives  the  whole  show  away:  "The  evidence  shows  con- 
clusively that  the  great  majority  of  the  plans  (company  unions) 
were  favored  and  fostered  by  the  companies  in  order  to  forestall 
outside  unionization.1'  The  cat's  out  of  the  bag.  Here  is  the  reason 
why  some  of  the  steel  companies  have  been  paying  out  a  quarter 
of  a  million  dollars  every  year  to  finance  their  company  unions. 

Company  unions  have  been  set  up  "to  forestall  outside  unioniza- 
tion." But,  as  we  have  seen,  Union-Prevention  is  part  of  the 
province  of  the  private  detective  agencies.  Are  they  left  out  in  the 
cold  ?  Not  on  your  life.  They  are  specialists  in  every  kind  of  Union- 
Prevention.  If  it's  company  unions  that  are  necessary  to  do  the 
trick,  they  are  prepared  to  make  that  part  of  their  service.  Thus  the 
Butler  System  of  Industrial  Survey,  New  York,  advises  prospective 
clients,  "Where  it  is  desired  that  company  unions  be  formed  we 
first  sell  the  idea  to  the  workers  and  thereafter  promote  its  develop- 


SMASH  THE  UNION!  31 

ment  into  completion.  Hundreds  of  such  organizations  have  been 
formed  by  us  to  date." 

Was  the  Butler  System  alone  in  the  field?  It  was  not.  Railway 
Audit,  we  learn  from  one  of  their  letters  placed  in  evidence,  knew 
all  of  the  tricks  of  the  company  union  game.  Mr.  L.  D.  Rice,  vice 
president  and  general  manager,  gives  a  few  pointers  to  Mr.  W.  H. 
Gray  who  is  out  in  the  field  soliciting  business.  "  We  have  been  suc- 
cessful in  assisting  in  starting  a  lot  of  employees'  associations,  and  I 
think  that  you  will  find  some  of  the  manufacturers  interested  along 
this  line.  At  the  present  time  the  non-union  employees  of  Reading, 
Pa.,  get  out  a  semi-monthly  paper,  and  it  is  a  mighty  good  one.  It 
combats  the  union  paper.  Quite  often  they  expose  some  of  the 
things  that  the  unions  do.  No  doubt  Mr.  Ivey  has  a  copy  in  Atlanta, 
and  I  am  requesting  him  to  send  you  one  so  that  you  can  look  over  it. 

"Some  of  our  people  are  very  instrumental  in  assisting  in  the 
publication  of  this  paper,  as  well  as  the  entertainment,  etc.  that 
these  non-union  employees  carry  on. 

"You  can  also  start  the  same  kind  of  organizations  in  other  tex- 
tile plants." 

This  branch  of  the  agencies'  service  —  the  setting  up  of  company 
unions  —  was  a  good  talking  point  when  business  was  bad,  i.e., 
where  there  was  no  "labor  trouble."  On  those  occasions  spy  agen- 
cies became  "insurance  salesmen,"  according  to  A.  E.  Lawson, 
formerly  secretary  of  the  National  Corporation  Service.  Here  is  Mr. 
Lawson  on  the  witness  stand: 

SENATOR  LA  FOLLETTE.  Now,  when  there  were  not  any  labor 
troubles,  can  you  tell  us  how  you  got  business  then? 

MR.  LAWSON.  Well,  we  sold  the  business  on  a  proposition  of 
business  insurance,  "Protect  yourself  and  find  out  what  is  go- 
ing on  in  your  plant  before  trouble  actually  does  occur." 

SENATOR  LA  FOLLETTE.  Did  you  ever  have  occasions  where 
the  client  would  be  assured  in  a  situation  of  that  kind  that 
something  could  be  done  in  the  way  of  helping  to  build  up 
company  unions  ? 


32  THE  LABOR  SPY  RACKET 

MR.  LAWSON.  Yes,  I  know  of  such  cases  .  .  .  We  put  men 
in  the  Newton  Steel  Company  at  Newton  Falls  just  after  the 
plant  was  reopened  for  business  and  formed  a  company  union 
there.  We  also  formed  a  company  union  in  the  Taylor  Win- 
field  Company  at  Warren,  Ohio,  to  of  set  any  possibility  of 
joining  the  outside  union. 

SENATOR  LA  FOLLETTE.  How  did  they  go  about  setting  up 
these  company  unions,  if  you  know? 

MR.  LAWSON.  Well,  they  would  put  one  man  in  as  a  leader/ 
furnish  him  with  information  as  to  bylaws  and  regulations  of 
the  company  union. 

SENATOR  LA  FOLLETTE.  Who  usually  prepared  the  bylaws, 
and  so  forth? 

MR.  LAWSON.  Well,  we  had  probably  15  or  20  different  set- 
ups from  other  manufacturing  plants. 

SENATOR  LA  FOLLETTE.  You  would  sell  the  client  the  one  he 
liked  best? 

MR.  LAWSON.  We  would  sell  him  the  one  that  we  thought 
would  fit  the  plant  best. 

SENATOR  LA  FOLLETTE.  You  usually  got  his  approval  of  it 
before  you  started  up? 

MR.  LAWSON.  Oh,  certainly. 

(That  does  have  a  familiar  ring,  doesn't  it?  "Do  you  want  an 
endowment  policy,  a  2o-year-life,  or  an  annuity?  We  are  prepared 
to  sell  you  exactly  the  kind  of  insurance  that  is  best  suited  to  your 
needs.") 

One  other  point  needs  to  be  cleared  up.  How  were  the  workers  in 
the  plants  persuaded  to  throw  in  their  lot  with  the  company  union? 
In  many  plants  they  had  no  choice  —  it  was  a  case  of  join  the  com- 
pany union  or  lose  your  job.  But  in  some  plants  where  the  workers 
inclined  toward  their  own  union,  what  arguments  were  used  to 
swing  them  into  the  company  union?  Mr.  C.  M.  Kuhl,  an  operative 
of  fourteen  years  experience  with  several  agencies,  answers  that 
question.  "These  inside  operators  would  talk  and  talk  against  the 


SMASH  THE  UNION!  33 

union,  the  American  Federation  of  Labor,  and  use  a  point  similar  to 
this,  '  Well  why  pay  dues  to  a  lot  of  organizers,  presidents,  secre- 
taries .  .  .  ?' 

"And  another,  'For  instance,  if  we  give  a  dollar  here  in  our  par- 
ticular local  only  a  quarter  stays  here,  and  so  much  goes  down  to 
Columbus  at  the  State  headquarters  and  the  rest  goes  to  Washing- 
ton. So  out  of  an  actual  dollar  we  put  in  the  American  Federation  of 
Labor  union  why  we  only  keep  that  quarter  here.  Now,  if  we  keep  a 
company  union  we  don't  pay  any  dues,  and  we  save  those  dues, 
which  will  amount  to  $2  or  $3  a  month. " 

There  is  little  doubt  that  these  were  effective  arguments.  The 
growth  of  company  unions  after  1933  was  tremendous.  And  spy 
agencies  played  a  great  part  in  their  formation. 

But  the  growth  of  legitimate  trade  unions  after  1933  was  also 
tremendous.  This  happened  in  spite  of  the  poisonous  activities  of 
the  spy  agencies,  which  were  so  active  in  Union-Prevention  and 
Union-Smashing.  American  labor  after  1933  was  on  the  march  and 
trade  unions  were  bound  to  gain  strength  in  the  face  of  any  opposi- 
tion, no  matter  how  powerful.  But  had  it  not  been  for  the  under- 
cover activities  of  the  detective  agencies,  they  would  have  grown 
even  stronger.  Of  that  there  is  no  doubt.  Senator  La  Follette  lis- 
tened to  the  evidence  for  weeks.  He  was  chairman  of  the  committee 
that  conducted  the  inquiry.  He  is  in  a  position  to  know.  Here  is  his 
opinion:  "In  the  light  of  the  testimony  this  committee  has  taken, 
the  evidence  is  overwhelming,  in  the  opinion  of  the  chairman  of  this 
committee,  that  the  injection  of  these  labor  spies  in  the  unions,  and 
the  fact  that  they  come  to  be  in  charge  of  union  activities,  get  to  be 
officers  of  unions,  cart  those  records  back  and  forth  to  the  detective 
agency  offices,  report  the  names  of  men  who  apply  for  membership 
to  the  management  of  corporations,  have  demonstrated  beyond 
any  doubt  in  the  minds  of  any  fair-minded  persons  whatsoever,  that 
the  use  of  this  labor  espionage  is  demonstrated  and  proved  to  be  one 
of  the  most  effective  weapons  in  destroying  genuine  labor  collective 
bargaining  activities  on  the  part  of  workers." 


III.  Spies  at  Work 


SO  MUCH  FOR  what  the  agencies  do.  Now  how  do  they  do  it? 
What  is  the  technique  for  Union-Prevention  and  Union-Smash- 
ing? 

Let's  begin  with  the  spy.  He  may  be  brought  into  the  factory 
from  the  outside  and  given  a  job,  as  Martin,  the  Pinkerton  spy, 
was  brought  into  the  Fruehauf  Trailer  plant.  Or  he  may  be  one  of 
the  men  already  at  work  in  the  plant,  who  is  persuaded  or  tricked 
into  becoming  a  spy.  (How  that  is  done  is  a  long  and  interesting 
story  which  will  be  told  in  the  next  chapter.)  But  in  either  case, 
whether  he  is  an  outside  operative  brought  into  the  plant,  or  one  of 
the  workers  already  there,  he  does  his  day's  work  at  the  bench  or  on 
the  belt  just  as  the  other  workmen  do.  Few  people  in  the  plant 
know  who  he  is  —  maybe  only  the  plant  superintendent  or  the 
personnel  director.  The  foreman  seldom  knows.  The  workers  seldom 
know.  For  the  stool-pigeon  is  one  of  them  —  a  worker.  He  eats 
with  them,  talks  as  they  do,  complains  about  the  same  injustices, 
goes  out  with  them  at  night  to  the  movies  or  to  the  union  meetings. 
The  workers  know  only  that  they  are  being  spied  on,  but  who  the 
spy  is  they  don't  know.  After  they  find  out,  if  they  ever  do,  then  of 
course  it's  easy  to  think  back  to  a  hundred  and  one  little  incidents 
which  should  have  made  them  suspicious;  but  before  they  find 
out  it's  not  so  easy  —  very  often  the  exposed  stool-pigeon  is  the 
man  whom  they  would  have  least  suspected. 

It's  the  spy's  job  to  make  friends  with  as  many  workers  as  pos- 
sible, win  their  confidence,  and  listen  to  their  talk.  He  must  keep 
his  eyes  and  ears  open  at  all  times  —  and  report  what  he  sees  and 
hears.  Here  are  the  specific  instructions  of  the  Railway  Audit  & 
Inspection  Co.  to  one  of  its  operatives  in  a  knitting  mill: 

34 


SPIES  AT  WORK  35 

While  working  in  this  plant  it  will  be  necessary  that  you  do 
whatever  work  you  are  assigned  in  such  a  manner  as  to  be 
pleasing  to  all  concerned  and  not  cause  you  to  be  laid  off 
or  discharged  for  not  carrying  out  such  orders  as  are  given 
you  .  .  . 

It  will  be  necessary  that  you  mingle  with  the  employees  so 
that  you  can  win  their  confidence  to  such  an  extent  that  the 
men  will  confide  in  you  and  will  inform  you  as  to  just  what 
they  are  doing,  etc. 

It  will  be  necessary  that  you  render  a  good,  detailed,  lengthy 
report  each  and  every  day  covering  conditions  as  you  find  them, 
reporting  in  detail  the  conversations  you  hold,  those  you  over- 
hear, etc.,  and  try  to  make  each  day's  work  just  a  little  more 
interesting  than  the  day's  report  before,  and  we  feel  sure  if 
you  will  be  observant  to  all  that  is  going  on  around  you,  you 
will  be  able  to  report  many  things  of  value  to  this  client  and  will 
be  kept  working  there  indefinitely. 

You  are  to  mail  your  reports  promptly  to  the  writer,  to  Mr. 
W.  A.  Schraisen,  post  office  box  793,  Philadelphia,  Pa.  Do  not 
hold  up  your  reports  and  mail  them  in  a  couple  at  a  time,  but 
let  them  come  in  promptly  each  day,  so  that  the  client  will 
receive  the  information  before  it  is  too  old. 

Report  on  conditions  as  you  find  them,  also  offer  any  sug- 
gestions you  feel  will  be  of  value  to  the  client  —  be  on  the  alert 
for  what  is  taking  place,  report  all  you  possibly  can  learn  re- 
garding the  attitude  toward  the  company,  their  immediate 
superiors,  one  another,  etc.  —  whether  there  is  any  union 
agitation,  etc.,  any  loafing,  stealing,  waste  of  time,  materials, 
etc.,  how  they  do  their  work,  the  good  as  well  as  the  bad.  On 
Sundays  and  when  not  working  in  the  plant  it  will  be  necessary 
that  you  render  a  report,  and  in  order  to  do  so,  so  that  the 
client  can  be  billed  for  the  day,  it  will  be  essential  that  you 
associate  with  some  of  the  employees  outside,  i.e.,  get  out 
among  them,  visit  them,  so  that  they  will  be  able  to  obtain 
from  some  of  the  employees  information  that  you  may  be  able 


36  THE  LABOR  SPY  RACKET 

to  secure  in  no  other  way  for  much  information  of  value  to 
the  client  is  gained  in  this  way. 

Therefore,  it  is  essential  that  you  make  as  many  contacts  as 
you  possibly  can,  so  as  to  be  able  to  cover  as  much  ground  as 
you  can  possibly  do,  meet  some  of  the  employees  on  your  way 
to  work,  in  the  mornings,  also  during  lunch  hour,  and  on  your 
way  home  in  the  evenings,  as  well  as  by  making  appointments 
to  meet  some  of  them  in  the  evenings  in  order  to  become  better 
acquainted  with  them.  This  you  will  not  be  able  to  do  all  at 
once,  but  you  will  gradually  work  up  to  this  as  you  become  better 
acquainted  with  the  various  employees,  and  it  is  desired  that 
you  start  out  the  first  few  days  easy  and  not  be  too  forward, 
so  as  to  win  the  confidence  of  the  employees  and  be  able  to 
continue  indefinitely. 

The  usual  practice  is  for  the  spy  to  write  a  daily  report,  sign  it 
with  his  code  number,  put  it  in  an  envelope  without  a  return  ad- 
dress, and  mail  it  to  a  post  office  box  in  the  city  where  the  agency 
official  who  is  in  charge  of  that  particular  job  is  located. 

The  post  office  box  is  not  rented  in  the  real  name  of  the  agency 
or  of  any  of  its  operatives.  It  is  rented  under  a  fake  name.  The  spy 
report  is  picked  up  each  day,  brought  to  the  agency  office  and  read 
by  the  agency  official  who  is  handling  that  job.  This  official  then 
edits  the  report.  He  corrects  the  spelling  and  the  grammar,  elimi- 
nates the  irrelevant  material,  and  fixes  up  the  report  in  general. 
Sometimes  he  really  fixes  it  up  —  not  only  subtracts  unimportant 
details  from  the  original,  but  also  adds  important  —  and  untrue  — 
details  to  the  original.  Next,  the  edited  report  is  typed  and  sent  to 
the  client. 

Then  what?  The  axe  falls.  Before  long,  the  manager  may  be  called 
into  the  superintendent's  office  and  told  to  discharge  John  Smith, 
Joe  Brown,  and  several  others.  "But  why?"  protests  the  manager. 
"Smith  is  one  of  my  best  workers,  and  Brown  is  steady  and  reliable, 
he's  worked  here  for  seven  years.  And  there's  nothing  wrong  with 
the  other  boys  you  want  me  to  fire.  What's  it  all  about?" 


SPIES  AT  WORK 


37 


"You're  wrong,  sir,  there  is  something  wrong  with  all  these  men. 
They're  agitators.  They're  talking  union  to  the  men.  We  can't 
have  that  here.  They  must  go,"  replies  the  superintendent.  "And  — 
er  —  be  sure  you  don't  tell  them  why  you're  firing  them.  Think  up 
some  excuse  —  drunkenness,  or  being  late,  or  wasting  materials  — 
anything.  But  get  rid  of  them." 

Now  let's  look  at  the  successive  steps: 


SPY  REPORT  EN  ROUTE 


Of  course  the  men  who  are  fired  are  not  fooled  by 
the  manager's  lame  excuses.  They  know  full  well  why 
they  have  been  fired.  The  other  workers  in  the  plant 
know,  too.  They  see  that  because  these  men  were 
union-conscious,  or  active  in  the  union,  they  lost  their 


THE  MEN-OUT  OF 
A  J  OB  AHO  PROBABLY 
IHACKUSTfD 


38  THE  LABOR  SPY  RACKET 

jobs.  Naturally,  these  other  workers  are  afraid.  When  the  union  or- 
ganizer tries  to  interest  them  in  the  union,  they  shy  away.  The  baby 
union  is  smothered  in  infancy.  Or,  if  the  workers  are  already  mem- 
bers of  the  union,  they  turn  up  less  frequently  at  meetings  —  and 
after  a  while,  they  drop  out.  The  grown-up  union  is  strangled.  The 
spy  has  done  his  job. 

Not  all  of  it,  however.  So  far  his  job  has  been  easy.  But  he  has 
other  work  to  do.  And  this  other  work  is  more  difficult.  Where  there 
is  a  union,  he  must  get  into  it  and  make  it  ineffective,  cause  dissen- 
sion, break  it  up  if  possible.  That's  harder.  But  it  is  done.  Remem- 
ber the  Flint  local  of  22,000  in  1935  which  slid  down  to  122  in  1936; 
remember  Roszel  who  was  able  in  Hartford,  to  force  a  membership 
of  2500  down  to  75.  Exactly  how  is  it  done  —  how  does  the  spy  go 
about  sabotaging  the  union  ? 

We  get  a  clue  from  part  of  a  spy  report  of  a  union  meeting: 


Erie,  Nov.  lyth,  1933. 

Local  No.  1  01.  I.  A.  of  M.,  met  at  C.  L.  U.  Hall,  1703  State 
at  Friday  evening. 

Meeting  called  to  order  promptly  at  8  P.M.,  President  C 
Hall  presiding,  Financial  Sec'y  Henry  Searle,  also  present. 
(These  two  men  both  work  at  the  Standard  Stoker.) 

Seven  members  in  attendance. 

Communication  from  grand  lodge,  acknowledging  receipt 
of  letter  from  local  #101,  addressed  to  Mr.  Brown  of  Cleve- 
land, and  who  is  organizer  from  this  district,  and  asking 
the  grand  lodge  to  furnish  an  organizer  for  Erie,  grand 
lodge  stated  the  matter  was  rec'g  attention  and  would  answer 
later. 

No  new  applications,  no  initiations. 

[It  was]  Suggested  that  a  comm't'ee  of  three  out  of  work 
members  be  appointed  to  act  as  an  organizing  com't'ee  and 
look  up  several  men  who  had  paid  in  sums  of  .25  cts  to  $2.  on 
applications  and  had  not  been  heard  from  since.  This  com't'ee 
was  to  go  out  and  look  these  men  up  and  also  try  to  see  other 


SPIES  AT  WORK  39 

machinists  and  get  them  to  join  the  union  and  to  pay  their 
own  expenses  and  serve  without  pay. 

This  was  called  absurd  by  Shults,  who  said  if  those  who 
were  working  were  not  interested  enough  in  trying  to  better 
their  conditions  ...  it  was  absurd  to  think  that  out  of  work 
members  were  going  to  spend  time  and  money  trying  to  or- 
ganize, this  and  the  fact  that  the  grand  lodge  was  thinking 
the  matter  over  of  giving  Erie  some  help  in  organizing  work, 
some  of  the  other  members  then  spoke  along  the  same  lines 
and  criticized  the  grand  lodge  for  not  getting  on  the  job  and 
the  matter  was  allowed  to  drop,  no  action  taken  .  .  . 

D.  G. 

Here  we  see  the  cunning  spy  carrying  on  his  destructive  work  in- 
side the  union.  Follow  the  steps.  One  of  the  members  has  a  good 
idea.  Some  of  the  unionists  are  out  of  work  —  nothing  to  do,  and 
lots  of  free  time.  Let  three  of  them  act  as  a  committee  whose  job  it 
shall  be  to  bring  more  members  into  the  union.  Let  them  begin  by 
rounding  up  those  machinists  who  have  already  filed  their  applica- 
tions to  join,  and  have  even  paid  in  some  money.  Obviously  all  that 
these  workers  need  is  just  one  more  push  and  they'll  be  in  the 
union.  Next,  let  the  committee  go  after  other  machinists  and  try  to 
get  them  to  join.  It's  a  good  idea  because  if  the  committee  is  success- 
ful the  union  will  have  been  strengthened  with  the  addition  of  new 
members;  if  the  committee  is  unsuccessful,  nothing  is  lost,  since  the 
members  of  the  committee  were  idle  anyway. 

Now  what  happens?  Up  hops  Shults  who  calls  the  plan  "absurd." 
When  he  is  through  talking,  not  only  is  the  matter  "allowed  to  drop, 
no  action  taken,"  but  some  of  the  members  have  been  led  to  criticize 
"the  grand  lodge  for  not  getting  on  the  job"  Net  result:  plan  for  in- 
creasing membership  —  spiked;  also,  dissatisfaction  with  the 
grand  lodge  instilled  in  the  minds  of  several  members.  A  good 
night's  work  —  for  anyone  interested  in  hurting,  not  helping  the 
union. 

Who  is  responsible  ?  Shults  is  responsible,  according  to  the  report 


4o  THE  LABOR  SPY  RACKET 

of  D.  G.,  the  code  initial  of  the  spy.  But  is  Shults  also  a  spy?  He  is. 
Shults  is  D.  G.,  and  D.  G.  is  Shults.  They  are  one  and  the  same. 
When  D.  G.  here  reports  on  the  fine  wrecking  job  done  by  Shults, 
he  is  boasting  about  his  own  exploits. 

Now  let  us  attend  another  meeting  of  the  machinists'  local  in 
Erie,  two  weeks  later.  With  the  help  of  the  report  of  D.  G.  (Shults) 
we  can  see  what  happens: 

Erie,  Dec.  ist,  1933. 

Meeting  Called  to  Order  by  President  Hall  with  eleven 
members  present  .  .  . 

The  new  officers  for  the  coming  year  were  elected  no  great 
change  in  personnel,  and  some  of  the  newly  elected  men  have 
not  been  members  a  year,  the  constitution  of  the  machinist 
calls  for  a  membership  of  one  year  before  eligible  to  hold  office, 
but  the  new  members  looked  harmless  so  thought  best  not  to 
object. 

Federal  Local  organizer,  Winters,  had  requested  some  of  the 
members  to  let  him  come  in  and  explain  his  pet  scheme  of 
taking  all  machinist  into  the  Federal  Local  then  telling  them 
that  they  must  join  the  machinist  Union;  the  member  who 
proposed  his  coming  in  stated  that  Winters  advised  that  his 
organizing  of  the  Olacker  Mfg.  Co.  was  being  held  up  because 
the  machinist  at  this  plant  refused  to  pay  in  $5.00  to  join  the 
Machinist  Union  while  it  only  cost  the  rest  2.00  to  join  the 
Federal  Local,  and  unless  he  could  take  the  machinist  in  at 
2.00  he  (Winters)  couldn't  organize  the  plant.  Several  members 
seemed  to  think  it  was  all  right,  but  after  some  discussion  a 
member  (Shults)  took  the  floor  and  objected  to  allowing  the 
man  to  enter,  told  them  his  scheme  was  unconstitutional  and 
that  he  knew  it,  that  the  members  of  this  Machinist  Local 
ought  to  know  if  they  read  the  constitution  and  that  any  man 
who  wanted  to  join  a  trade  and  didn't  think  it  was  worth  5.00 
to  belong  probably  wouldn't  amount  to  much  as  a  member,  • 
and  would  probably  expect  the  Local  to  help  him  get  a  raise  the 


SPIES  AT  WORK  41 

first  week  he  belonged,  that  the  thing  to  do  was  to  settle 
it  once  and  for  all.  Tell  Mr.  Winters  that  machinist  must 
join  the  machinist  local  or  else  they  couldn't  join  anything 
in  Erie,  this  action  was  taken  and  Winters  was  denied  the 
Floor. 
Nothing  else  of  interest  transpired  .  .  . 

D.  G. 

Thus  Shults,  the  spy,  "settles  it  once  and  for  all."  The  union 
organizer  has  trouble  enrolling  new  members  because  the  initial 
fee  is  too  high;  he  has  a  plan  to  get  over  this  difficulty  which  he 
wants  to  explain  to  the  local.  But  Shults  is  on  the  job.  He  is  inter- 
ested in  preventing  organization.  He  defeats  the  plan  by  pointing 
out  that  it  is  unconstitutional.  Result?  "Winters  was  denied  the 
Floor." 

Notice  that  Shults  is  really  no  stickler  for  the  constitution.  He 
uses  it  only  where  he  needs  to.  He  points  out  that  several  of  the 
newly  elected  officers  of  the  union  have  been  elected  contrary  to 
the  provisions  of  the  constitution  —  but  he  doesn't  object  because 
"the  new  members  looked  harmless." 

Everything  under  control  —  Shults's  control.  A  few  more  meet- 
ings like  these  two  with  Shults  squelching  every  proposed  scheme 
for  getting  new  members,  and  soon  there  won't  be  any  members  at 
all.  The  union  will  be  dead. 

The  technique  is  plain.  Shults  is  obviously  bright.  He  knows  how 
to  talk.  He  gives  plausible  arguments.  He  is  ever  on  the  watch  — 
against  the  interests  of  the  union.  And  he  has  applied  himself  to  the 
task.  How  many  members  of  a  union  ever  bother  really  to  learn  the 
constitution?  Very  few.  The  spy  does  —  it's  part  of  his  technique  of 
destruction.  How  many  members  of  a  union  ever  try  to  become  an 
officer  in  the  union  ?  Very  few.  Most  workers  are  shy,  or  modest,  or 
haven't  time.  Not  so  the  spy.  He  has  the  agency's  orders  to  do  just 
that  —  to  become  an  officer  in  the  union.  How  many  members  of  a 
union  care  to,  or  dare  to,  serve  on  committees  in  the  union?  Very 
few.  The  spy  does  —  it's  an  important  part  of  his  technique  of  de- 


42  THE  LABOR  SPY  RACKET 

struction.  Most  union  members  are  quite  content  to  let  the  other 
fellow  do  the  talking  and  the  working  —  they  prefer  to  play  a  pas- 
sive role.  But  the  spy  has  no  choice  —  to  do  his  best  work,  he  must 
play  an  active  role.  Most  workers  do  not  consider  that  it  is  their  job 
to  build  up  and  strengthen  their  union;  but  the  spy  knows  that  it  is 
his  job  to  tear  down  and  weaken  the  union.  And  there's  where  the  spy 
has  the  edge  over  the  honest  trade  unionists. 

Let's  watch  another  spy  at  work.  This  time  the  story  is  contained 
in  the  sworn  affidavit  of  Charles  Killinger,  an  automobile  union 
organizer  from  Michigan: 

I,  Charles  Killinger,  being  duly  sworn,  deposes  and  says: 
I  have  been  an  active  member  of  the  union  for  the  last  three 
years  and  am  at  present  a  part-time  organizer  for  the  union. 
John  Stott  was  on  the  legislative  committee  of  the  Amalga- 
mated Local  #156  and  was  also  chairman  of  the  Welfare  com- 
mittee. Chairmanship  of  the  welfare  committee  gave  him  an 
opportunity  to  visit  a  number  of  union  people  who  were  sick 
at  various  times.  He  visited  me  some  months  ago  when  I  was 
ill,  and  after  consoling  with  me  about  my  illness,  began  to 
abuse  the  work  being  done  by  Wyndham  Mortimer  and  Rob- 
ert Travis,  the  international  organizers  who  had  been  sent  into 
Flint  during  the  summer.  The  executive  board  of  the  Local 
#156  was  particularly  quiescent  as  far  as  organization  went  and 
it  was  the  unceasing  work  of  Mortimer  and  then  of  Travis 
which  led  to  the  building  up  of  the  union.  This  was  apparent  to 
everyone  but  bothered  a  number  of  individuals  who  seemed  to 
delight  in  keeping  the  union  as  small  as  possible.  On  the  occa- 
sion of  his  visit  to  me,  Stott  said  about  Mortimer  and  Travis, 
"They  are  no  good.  They  don't  do  any  work  .  .  .  When  we 
get  rid  of  Mortimer  and  Travis  we  will  be  able  to  do  something 
here"  .  .  . 

Stott  was  always  very  active  on  the  floor  of  the  meetings, 
took  part  in  all  discussions,  but  always  managed  to  raise  hair- 
splitting questions  on  motions  before  the  assembly,  tending  to 


SPIES  AT  WORK  43 

confuse  many  of  the  younger  members  and  to  check  decisive 
action  by  the  union. 

CHARLES  KILLINGER 

Spy  Stott's  technique  is  clear  from  this  affidavit.  In  the  last 
paragraph,  we  find  him  using  tactics  similar  to  those  employed  by 
Shults,  raising  "hair-splitting  questions  tending  to  confuse  many 
of  the  younger  members  and  to  check  decisive  action  by  the  union." 
Anyone  who  has  ever  attended  a  meeting  in  which  endless  time  is 
spent  in  debating  hair-splitting  questions  knows  how  very  annoying 
that  can  be.  If  it  happens  at  every  meeting  —  and  Shults  and  Stott 
were  there  to  make  it  happen  —  then  many  of  the  members  begin 
to  look  upon  union  meetings  as  a  bore  to  be  avoided  if  possible, 
which  is  exactly  what  the  spies  want  to  accomplish. 

Equally  annoying,  if  not  more  so,  is  belonging  to  an  organization 
which  sets  up  committees  to  perform  certain  tasks  which  somehow 
never  get  done.  The  spy  knows  this  and  frequently  worms  his  way 
on  to  as  many  committees  as  possible  with  the  sole  purpose  of  sa- 
botaging their  work.  We  learn  from  Killinger's  affidavit  that  Stott, 
the  spy,  was  on  both  the  legislative  and  the  welfare  committees. 
We  learn  from  another  affidavit,  that  of  Walter  Reed,  active  union 
member  of  Local  #156,  that  Stott  was  also  elected  secretary  of  the 
negotiating  or  grievance  committee.  How  did  he  perform  his  duties 
on  that  important  committee?  Reed  tells  us: 

The  committee  didn't  function  in  spite  of  the  fact  that  there 
were  cases  to  be  taken  up.  October,  1936  we  had  a  meeting  of 
the  Chevrolet  unit  called  by  Robert  Travis  for  the  purpose  of 
discussing  what  grievances  they  should  take  up  before  the  man- 
agement. The  negotiating  committee  was  very  insistent  that 
they  should  not  go  down  because  they  had  no  grievances.  We 
said  that  we  had  general  grievances  that  should  be  taken  up, 
such  as  seniority  rights,  shop  conditions,  and  hours.  The  com- 
mittee said  they  wanted  individual  grievances,  signed,  and 
said  that  was  all  they  could  handle.  Even  though  there  were 
some  men  with  personal  grievances,  the  committee  refused, 


44  THE  LABOR  SPY  RACKET 

and  Stott  made  a  speech  saying  that  these  men  should  not  go 
down  to  the  management,  so  nothing  was  done  about  it. 

What  will  be  the  temper  of  those  men  with  grievances  who  go  to 
the  committee  set  up  by  the  union  to  handle  their  cases  when  they 
find  the  committee  will  do  nothing  for  them?  The  spy  knows  that 
this  "nothing  was  done  about  it"  is  a  very  effective  way  of  causing 
dissatisfaction.  Equally  effective  is  Stott's  other  tactic  as  chairman 
of  the  welfare  committee,  that  of  visiting  the  members  and  buzzing 
into  their  ears  criticisms  of  the  leadership.  Now  it  is  true  that  the 
leadership  of  many  unions  is  not  above  criticism.  Often  the  leader- 
ship is  stupid,  self-satisfied,  inactive  —  asleep  at  the  switch.  Such 
leadership  should,  of  course,  be  criticized  severely.  But  the  spy  is 
not  concerned  with  legitimate  criticism  where  it  is  truly  justified. 
He  criticizes  all  leadership  but  his  own  —  one  more  tactic  in  his 
arsenal  of  weapons  against  unions. 

We  see  this  clearly  in  the  activity  of  another  spy,  Francis  Arthur 
Roszel.  We  have  met  the  worthy  Mr.  Roszel  before.  In  1935,  you 
remember,  he  was  secretary  of  a  local  in  Hartford  which  he  suc- 
ceeded in  smashing.  He  was  the  spy  who  answered  the  question- 
naire on  dick  agencies  sent  out  by  the  A.  F.  of  L.  He  was  exposed 
—  and  one  year  later  he  turns  up  again  as  a  member  of  a  local  of 
the  United  Automobile  Workers  in  Michigan!  Here  he  continues 
his  activity  as  stool-pigeon  and  union-smasher.  Part  of  another 
sworn  affidavit  shows  Roszel  at  work: 

The  union  organizer  connected  with  the  local  union  at  this 
plant  was  and  is  Stanley  Novak.  Novak  is  a  Pole.  Roszel 
continually  agitated  the  members  of  the  union  against  "foreign" 
and  Polish  leadership  in  the  union,  with  the  quite  apparent 
objective  of  creating  dissension  and  causing  Novak  to  be 
discredited. 

Notwithstanding  the  fact  that  Roszel  went  on  the  picket  line 
from  time  to  time  during  the  strike,  he  continually  agitated 
among  the  men,  urging  them  to  go  back  to  work.  His  line  was 
that  the  strike  had  been  called  by  a  mere  handful  of  men,  that 


SPIES  AT  WORK  45 

the  members  of  the  Union  had  not  been  consulted,  etc.  Here 
again  was  an  attack  upon  the  leadership  and  an  effort  to  break 
the  strike. 

Shults,  Stott,  and  Roszel  were  evidently  able  hard-working 
spies,  well  versed  in  the  tactics  best  suited  to  Union-Smashing. 
Now  try  to  imagine  a  man  who  combines  all  the  "virtues"  of  all 
three  of  them  and  you  have  a  picture  of  Bart  Furey,  a  spy  planted 
in  the  Electric  Auto-Lite  Company  of  Toledo  in  1934.  Furey  was 
Shults,  Stott,  and  Roszel  all  rolled  into  one.  Like  Shults,  he  was 
familiar  with  the  constitution  and  parliamentary  procedure;  in 
addition,  "He  knew  the  international  rules;  he  even  knew  the  inter- 
national officers  .  .  .  He  knew  them  personally,  man  to  man,  all 
the  international  executive  officers."  Like  Stott,  he  "handled"  the 
grievances  of  the  men,  i.e.,  he  did  nothing  about  them.  "It  seemed 
as  if  he  would  go  so  far  but  he  would  not  go  out  of  his  road  to  help 
these  boys  on  their  grievances  .  .  .  the  grievances  would  pile  up." 
Like  Roszel  in  Hartford,  Furey  became  an  officer  in  the  union  — 
first,  chairman  of  the  executive  shop  committee,  and  later  president 
of  the  union;  like  Roszel  in  Michigan,  Furey  attacked  the  leader- 
ship—  witness  this  sworn  affidavit  by  Edith  Roberts: 

I  had  been  very  active  in  the  union,  and  was  one  of  the  lead- 
ers among  the  girls.  I  was  on  the  various  committees  of  the 
union.  But  after  refusing  this  offer  [Furey  asked  Miss  Roberts 
"to  become  a  spy]  Furey  got  after  me  in  the  union  and  told  the 
others  he  didn't  want  me  on  any  of  the  committees  of  the 
union.  He  told  people  not  to  vote  for  me,  saying  to  several  that 
she  should  not  be  put  on  the  committee  otherwise  he  would  not 
serve  as  chairman  since  "she  was  too  dumb,  she  blocks  every- 
thing I  try  to  put  across."  He  went  even  further  than  that, 
asking  various  people  around  the  shop  to  sign  a  petition  to  have 
me  ousted  from  my  job  in  the  shop. 

I  told  the  story  of  his  offer  to  me  to  several  people  in  the 
union,  but  he  had  them  so  wrapped  around  his  finger  that  no 
one  would  believe  the  story.  On  two  different  occasions  after 


46  THE  LABOR  SPY  RACKET 

the  conversation  with  him  and  my  refusal  of  the  offer,  I  have 
received  anonymous  letters  which  were  put  under  my  door 
telling  me  to  keep  my  mouth  shut  ...  I  am  and  was  an  active 
militant  union  leader  among  the  women  in  the  shop  and  was 
constantly  trying  to  bring  the  women  forward  in  the  union. 
Furey  did  everything  he  could  to  get  me  removed  from  any 
position  of  influence,  after  I  had  turned  down  his  offer. 

Also  in  the  record,  is  another  affidavit,  by  Homer  Martin,  con- 
cerning Furey's  many  attempts  to  split  up  Local  12;  and  his  en- 
deavor "in  every  way  possible  to  write  such  provisions  into  the 
International  Constitution  as  would  completely  emasculate  the 
International  Union  and  create  a  loosely-federated  group  of  local 
unions.  This  move  by  Furey  was  only  defeated  because  of  the 
staunchness  of  the  other  members  of  that  committee." 

A  very  busy  spy  was  Mr.  Bart  Furey.  Let  it  be  said  of  him,  in  all 
fairness,  that  he  failed  in  the  end,  not  because  of  his  own  weakness, 
but  because  of  the  strength  of  some  of  the  union  members;  not  be- 
cause he  did  not  take  seriously  his  job  of  Union-Smashing,  but  be- 
cause opposed  to  him  were  some  workers  who  took  seriously  their 
job  of  Union-Building. 

Still  another  tactic  for  Union-Smashing  is  that  of  robbing  the 
treasury.  Too  many  one-time  members  of  unions  have  lost  faith  in 
trade  unionism  because  the  treasurer  of  their  local  ran  off  with  the 
money.  Very  often  that  treasurer  is  a  spy.  In  this  connection,  two 
affidavits  are  in  the  record  concerning  the  activities  of  Richard 
Adlen,  a  spy.  "Adlen  was  .  .  .  always  prominent  in  handling  social 
affairs  and  on  several  occasions  wormed  his  way  into  a  position  in 
the  union  where  he  could  handle  the  finances.  He  has  on  a  number 
of  occasions  been  accused  of  misappropriating  funds  or  not  properly 
accounting  for  funds  entrusted  to  him  by  the  union  .  .  .  Adlen 
was  a  part  of  a  committee  that  handled  the  finances  for  a  big  labor 
day  picnic  in  1934.  They  were  alleged  to  have  made  a  profit  of 
$1200.00  and  we  never  could  get  hold  of  the  accounts.  It  was  in- 
vestigated by  the  union,  but  only  $1.49  was  turned  in." 


SPIES  AT  WORK  47 

Spies  are  on  to  the  fact  that  it  doesn't  take  more  than  one  or  two 
such  raids  on  the  union  treasury  before  unions  of  several  thousand 
members  are  shaken  down  to  a  handful.  Spies  are  also  on  to  the  fact 
that  while  the  strike  is  a  useful  effective  trade-union  weapon,  an 
ill-advised  and  ill-timed  strike  is  dangerous  for  a  union  —  so  they 
do  what  they  can  to  start  such  strikes.  Spies  are  on  to  the  fact  that 
for  union  officials  to  conclude  a  sell-out  agreement  with  an  employer 
destroys  the  morale  of  the  union  members  —  so  they  do  what  they 
can  to  effect  such  agreements.  Spies  are  on  to  any  and  every  method 
of  Union-Smashing  and  Union-Prevention.  They  do  all  they  can 
to  make  use  of  those  methods. 

No  recital  of  spy  activities  along  these  lines  is  complete  without 
the  story  of  Louis  Foster  who  single-handed,  it  appears,  was  able 
to  forestall  the  unionization  of  thousands  of  workers.  This  story  is 
in  the  record.  It  is  sworn  to  by  John  D.  Lengel,  for  eight  years  the 
business  agent  for  the  International  Association  of  Machinists  in 
the  northern  New  Jersey  area.  Here  is  part  of  Mr.  Lengel's  account 
of  the  activities  of  spy  Louis  Foster: 

In  about  May  1934,  Louis  Foster,  without  any  solicitation 
on  the  part  of  the  union,  [local  #340,  Newark,  N.  J.],  applied 
for  membership  in  that  local.  He  stated  that  he  was,  at  that 
time,  working  in  the  Worthington  Pump  Company  at  Harrison, 
New  Jersey. 

Louis  Foster  immediately  became  a  very  active  union  member. 
He  volunteered  for  work  on  all  Committees  and  took  a  very  active 
part  in  discussions  on  the  floor  during  the  meetings  of  the  local. 
He  was  a  very  intelligent  and  able  speaker  and  was  recognized 
by  the  men  as  having  some  of  the  qualities  of  leadership. 

He  volunteered  for  work  on  the  Entertainment  Committee  to 
raise  funds  for  the  union.  This  job  involved  a  lot  of  work  and 
time  on  the  part  of  the  member  who  took  the  responsibility. 
Foster  stated  that  he  wanted  the  roster  of  members  of  the  local  in 
order  to  send  out  invitations  to  the  entertainment  for  the  purpose  of 
raising  money  for  the  lodge.  'The  roster  was  turned  over  to  him. 


48  THE  LABOR  SPY  RACKET 

A  year  later  I  discovered  that  the  manufacturers  in  the  vicinity  had  a 
complete  list  of  the  members  of  local  #340,  as  of  March  1935. 
This  was  the  same  list  that  had  been  turned  over  to  Foster 
and  could  have  only  been  secured  through  him. 

During  this  year  Foster  volunteered  to  be  the  representative 

from  the  machinists  union  to  the  convention  of  the  New  Jersey 

State  Federation  of  Labor.  This  position  involves  personal 

expenses  on  the  part  of  the  member  who  volunteers,  but  Foster 

was  willing  to  assume  the  expense  and  the  time  involved. 

The  Union,  local  #340,  was  having  great  difficulty  in  secur- 
ing new  members.  The  reason  being  that  the  machinists  in  this 
area  were  of  the  opinion  that  they  could  not  be  protected  in 
their  jobs  if  they  joined  the  union.  It  was  common  knowledge 
that  the  manufacturers  were  able  to  find  out  which  employees  had 
signed  applications  in  the  union  and  thus  discharged  them.  In 
and  about  September  1935,  I  held  a  meeting  of  the  employees 
of  the  Lionel  Manufacturing  Company  of  Irvington,  New 
Jersey.  The  meeting  was  held  at  the  Labor  Lyceum  in  Newark. 
Foster  was  present  at  that  meeting  and  took  a  very  active  part  in  it. 
About  1 20  employees  attended  the  meeting  out  of  which  about 
30  signed  applications  giving  their  names  and  addresses. 
About  two  days  after  the  meeting^  approximately  26  out  of  the  JO 
who  had  given  their  names  and  addresses  were  discharged. 
Foster  had  access  to  the  applications  and  no  doubt  turned  them 
over  to  the  employer. 

During  this  year  Foster  succeeded  in  being  elected  as  represent- 
ative  from  the  lodge  to  the  District  Council  of  Machinists .  About 
this  time  there  appeared  to  be  a  good  deal  of  internal  disputes 
within  the  union.  One  group  in  the  union  contended  that  I  was 
not  properly  fulfilling  my  duties  as  business  agent  and  was  not 
succeeding  in  getting  many  new  members.  Foster  took  the 
leadership  of  this  faction  which  attempted  to  oust  me  as  busi- 
ness agent  .  .  .  However,  I  was  elected.  Later  in  the  year, 
despite  the  fact  that  Foster  had  been  claiming  that  I  was  get- 
ting too  much  salary  and  it  ought  to  be  reduced,  he  made  a  mo- 


SPIES  AT  WORK  49 

tion  on  the  floor  that  I  be  presented  with  $100.00  Christmas  bonus 
and  a  new  car.  This  manoeuver  on  bis  part  caused  considerable 
confusion  and  dissatisfaction  in  the  union. 

In  the  early  part  of  1936,  the  union  started  a  campaign  to 
organize  the  machinists  in  the  automobile  repair  companies  in 
Newark.  At  our  first  organizational  meeting  we  had  a  large 
crowd  of  enthusiastic  prospective  members.  Within  a  few  weeks 
every  company  in  which  we  were  able  to  secure  applications,  got 
information  as  to  which  of  their  employees  had  signed  with  the 
union  and  there  were  wholesale  discharges  .  .  . 

I  have  recently  discovered  that  Louis  Foster  has  been  in  the 
employ  of  the  manufacturers  in  the  vicinity  by  virtue  of  his 
employment  as  a  spy  for  the  International  Auxiliary  Corpora- 
tion. It  is  now  clear  to  me  that  he  has  been  responsible  for  the 
prevention  of  organization  in  my  territory;  that  he  has  been  a  de- 
structive force  in  the  union;  that  he  prevented  the  real  organization 
for  collective  bargaining  of  the  20,000  employees  who  are  eligible 
for  membership  in  my  territory. 

Just  look  back  over  the  italicized  parts  of  that  quotation.  Some 
of  those  activities  might  be  indulged  in  by  any  honest  union  mem- 
ber. Some  of  them  only  a  spy  would  engage  in.  Take  them  altogether 
and  you  have  almost  a  perfect  picture  of  the  spy  technique  of 
Union-Prevention  and  Union-Smashing. 


IV.   The  Gentle  Art  of  Hooking 


ANDREWS  .  .  .  Letteer  .  .  .  Martin  .  .  .  Shults  .  .  .  Stott 
.  .  .  Roszel  .  .  .  Furey  .  .  .  Foster  .  .  .  and  a  host  of  others  — 
all  spies.  Capable,  energetic  men,  some  of  them  with  real  qualities 
of  leadership  —  all  stool-pigeons  Why  ?  What  happened  to  these 
competent  shrewd  men  and  the  thousands  of  others  like  them, 
which  inclined  them  toward  a  career  of  betrayal  of  their  fellow- 
workers  ? 

Some  were  inclined  that  way  to  begin  with  and  welcomed  the 
opportunity  to  pick  up  easy  money.  Others  were  unfortunate  —  they 
had  the  bad  luck  of  being  so  placed  that  they  could  be  of  service  to 
the  spy  agencies.  It  may  have  been  because  of  the  very  fact  that 
they  were  so  smart;  it  may  have  been  because  they  held  key  posi- 
tions in  the  union;  it  may  have  been  only  because  they  happened 
to  be  working  in  a  particular  department  in  a  factory.  Whatever 
the  reason,  they  were  in  a  position  where  they  could  be  of  use  to  the 
agency.  They  were  needed  for  a  special  job. 

So  they  were  "hooked." 

"Hooking"  is  the  technical  term  for  the  conversion,  by  an  agency 
operative,  of  an  honest  workman  into  a  spy.  How  is  it  done  ? 

Mr.  Williams,  a  worker,  comes  home  some  night  to  find  a  stranger 
in  his  house  waiting  for  him.  The  stranger,  an  affable,  courteous 
gentleman,  says  he  represents  a  group  of  the  stockholders  who  are 
interested  in  finding  out  whether  the  plant  is  being  run  as  efficiently 
as  possible,  whether  the  management  is  fair  to  the  men,  etc.  Would 
Mr.  Williams  be  interested  in  supplying  this  information  which 
would  be  of  great  use  to  the  stockholders  and  would  harm  nobody? 
Of  course,  the  stockholders  would  pay  him  for  his  trouble  —  say  $15 
a  week  for  writing  a  daily  report.  Mr.  Williams,  unsuspecting  and 

50 


THE  GENTLE  ART  OF  HOOKING  51 

in  need  of  the  extra  money,  agrees.  He  understands  that  secrecy 
will  be  necessary  because  the  stockholders  do  not  want  to  act  upon 
their  findings  until  they  have  collected  all  the  facts.  So  he  consents  to 
write  a  daily  report  to  a  box  number  in  another  city.  He  is  paid  $15 
in  cash  in  advance  for  the  first  week  and  he  signs  a  receipt.  All  is  well. 

But  not  for  long.  Another  week  or  two  goes  by  and  then  the  stranger 
in  another  visit,  suggests  that  he's  slipping  —  his  work  isn't  as  good 
as  it  should  be.  "We  want  more  of  what  the  men  are  talking  about, 
any  complaints  they  have,  any  union  activity,  etc."  At  this  point, 
Mr.  Williams  may  become  suspicious  and  balk  at  the  idea.  He  may 
then  be  persuaded  that  clearly  he  would  be  doing  no  wrong  if  he 
wrote  his  reports  as  suggested  because  all  that  the  stockholders  are 
interested  in  is  tracking  down  the  Communists,  agitators,  and 
troublemakers.  So  he  continues,  making  his  reports  "better,"  as 
suggested.  The  extra  money  comes  in  handy  all  this  while  so  that 
when  he  finally  realizes  that  he  has  become  a  paid  stool-pigeon  it's 
hard  for  him  to  give  it  up.  He  is  "hooked." 

If,  however,  he  realizes  earlier  that  there  is  something  shady 
about  the  whole  business  and  decides  to  quit,  he  may  be  gently  re- 
minded that  he  has  been  receiving  money  for  spying,  and  what 
would  his  fellow  workers  think  of  him  when  they  are  shown  his 
signed  receipts?  A  strong  man  faced  with  this  possibility  decides  to 
come  clean  anyway,  tell  his  fellow  workers  he  has  been  framed,  and 
see  what  happens.  A  weak  man  is  frightened  —  and  remains 
"hooked."  He  works  in  the  plant  as  before,  draws  his  usual  wages 
as  a  workman,  and  writes  daily  spy  reports  on  the  activities  of  his 
friends  in  the  factory. 

The  record  of  the  La  Follette  committee  hearings  is  studded  with 
cases  of  such  hooking  of  innocent  men.  Even  the  agency  heads  ad- 
mitted it  was  a  common  practice  with  them  (though  some  of  them 
had  an  aversion  to  the  term  "hooking"  —  they  preferred  to  say 
"employing"  or  "making  contact  with").  Mr.  Kuhl,  the  operative 
with  14  years  experience  who  knows  every  angle  of  the  business, 
was  a  willing  witness  —  he  had  decided  to  quit  the  business.  Here  is 
the  record  of  his  testimony  on  hooking: 


52  THE  LABOR  SPY  RACKET 

SENATOR  LA  FOLLETTE.  Have  you  ever  done  any  hooking  or 
roping  ? 
MR.  KUHL.  Yes,  sir. 

SENATOR  LA  FOLLETTE.  How  do  yOU  do  that? 

MR.  KUHL.  Well,  first  you  look  your  prospect  over,  and  if  he  is 
married  that  is  preferable.  If  he  is  financially  hard  up,  that  is 
number  two.  If  his  wife  wants  more  money  or  he  hasn't  got  a 
car,  that  all  counts.  And  you  go  offer  him  this  extra  money, 
naturally  you  don't  tell  him  what  you  want  him  for.  You  have 
got  some  story  that  you  are  representing  some  bankers  or  some 
bondholders  or  an  insurance  company  and  they  want  to  know 
what  goes  on  in  there.  •  •  • 

SENATOR  LA  FOLLETTE.  After  a  fellow  gets  hooked  suppose  he 
wants  to  get  unhooked;  is  that  difficult  for  him? 

MR.  KUHL.  Well,  if  he  is  a  good  man  and  you  don't  want  to 
lose  him,  because  they  are  hard  to  hook,  you  will  try  to  keep 
him  with  you.  You  have  his  receipts,  and  probably  he  will 
sign  a  receipt  with  a  number,  and  he  says  "Aw,  hell,  that  don't 
mean  anything.  That  is  only  a  number."  But  still  you  have  his 
handwriting  where  he  wrote  in  his  original  reports. 

Once  hooked,  it  becomes  the  operative's  next  job  to  get  himself 
elected  to  some  office  in  the  union  so  he  can  have  ready  access  to  the 
names  of  the  members  —  to  be  reported  to  the  agency  —  to  be 
reported  to  the  firm  —  to  be  discharged.  Roy  Williams  was  one 
such  operative.  Here  is  his  affidavit: 

I,  Roy  Williams,  of  my  own  free  will  do  voluntarily  ac- 
knowledge I  have  been  in  the  employ  of  the  Corporations 
Auxiliary  Corporation  as  espionage  operative  and  at  the  same 
time  and  during  the  same  period  I  was  the  elected  and  active 
Recording  Secy.  &  Trustee  of  the  Graham-Paige  local  of  the 
United  Automobile  Workers.  Signed.  Roy  WlLLIAMS 

Witness:  EDWARD  AYERS 

RICHARD  T.  FRANKENSTEEN  v 
L.  S.  GROGAN 


THE  GENTLE  ART  OF  HOOKING  53 

Richard  Frankensteen,  one  of  the  witnesses  to  this  confession, 
has  now  become  a  member  of  the  executive  board  of  the  United 
Automobile  Workers.  In  his  testimony  to  the  La  Follette  com- 
mittee, he  made  the  following  statement  about  Mr.  Williams.  "He 
was,  I  believe,  the  best  liked  and  most  popular  man  in  Graham- 
Paige  Motor  Company.  He  worked  there  for  17  years.  He  was  very 
well  thought  of.  He  was  elected  to  the  position  of  recording  secre- 
tary, and  this  year  is  chairman  of  the  board  of  trustees.  He  had 
worked  there  for  17  years  and  only  during  the  last  3  years  has  he 
been  hired  by  the  Corporations  Auxiliary.  He  was  hooked  into  it. 
By  that  I  mean  they  got  him  in;  they  roped  him.  He  did  not  know 
what  it  was  about  until  they  got  him  in.  Then  when  he  tried  to 
get  out  I  understand  that  a  Mr.  H.  L.  Madison  urged  him  to  stay 
in  —  told  him  his  work  was  perfectly  all  right,  that  he  should  stay, 
there  was  nothing  wrong,  that  the  Corporations  Auxiliary  was  not 
the  same  type  as  the  other  agencies  and  he  should  certainly  stay 
there.  So  the  fellow,  after  17  years  in  the  plant,  with  two  children 
is  out  on  the  street,  without  a  job.  I  don't  know  whether  the  Cor- 
porations Auxiliary  will  take  care  of  him  or  not. 

"That  man  was  not  a  typical  spy.  It  was  not  his  ambition  to  be- 
come a  stool-pigeon,  or  spy,  or,  as  we  call  them,  a  rat.  He  did  not 
mean  to  be  that  at  all,  he  was  just  hooked  into  it." 

The  Roy  Williams  tragedy  is  not  unusual.  It  is  typical.  An  ex- 
officer  of  the  National  Corporation  Service  admitted  that  of  some  300 
operatives  upon  whom  he  had  kept  records,  over  200  were  hooked 
men.  The  approach  is  nearly  always  the  same  for  all  the  agencies. 
Mr.  Gray,  roving  operative  for  Railway  Audit,  is  on  the  stand: 

SENATOR  LA  FOLLETTE.  Now  tell  the  committee,  Mr.  Gray, 
just  how  you  approach  these  men.  For  instance,  suppose  there 
is  a  labor  dispute  going  on  and  the  Railway  Audit  &  Inspection 
Co.  is  assigned  to  the  job  by  a  client.  Now  just  how  would 
you  go  about  it?  Suppose  you  found  the  type  of  man  you 
thought  was  all  right;  just  what  kind  of  sales  talk  would  you 
give  him  to  get  him  to  be  your  contact  man  ? 


54  THE  LABOR  SPY  RACKET 

MR.  GRAY.  Well,  perhaps  I  would  approach  him  as  an  insur- 
ance inspector. 

SENATOR  LA  FOLLETTE.  You  never  revealed  your  connection, 
did  you,  at  the  outset? 

MR.  GRAY.  Oh,  no. 

SENATOR  LA  FOLLETTE.  As  connected  with  the  Railway  Audit 
&  Inspection  Co.  ? 

MR.  GRAY.  No,  sir;  no  sir. 

Notice  how  positive  Mr.  Gray  is  that  he  never  reveals  his  con- 
nection. There's  a  reason.  It's  a  Railway  Audit  rule  which  is  made 
very  plain  to  all  contact  men.  On  May  24,  1935,  Gray  was  reminded 
of  that  rule  in  a  letter  from  his  superior,  L.  D.  Rice,  vice-president. 
Rice  is  short  and  to  the  point.  "As  to  hooked  men  ...  we  never 
let  them  know  who  they  are  working  for."  But  Gray  is  not  at  a  loss 
—  there  are  plenty  of  ways  of  representing  himself.  He  need  not 
always  pose  as  an  insurance  inspector.  He  might  be  a  newspaper 
man.  Or, 

SENATOR  LA  FOLLETTE.  Have  you  ever  suggested  or  inferred 
that  you  were  representative  of  minority  stockholders  that 
were  dissatisfied  with  the  management  ? 

MR.  GRAY.  Well,  I  might  have;  yes. 

SENATOR  LA  FOLLETTE.  That  is  one  of  the  ways,  is  it  not? 

MR.  GRAY.  Yes;  that  is  one  of  the  ways.  I  might  have  done 
that. 

SENATOR  LA  FOLLETTE.  When  the  N.R.A.  was  still  a  law  did 
you  ever  suggest  to  any  of  these  men  that  you  wanted  to  con- 
tact, that  you  were  kind  of  checking  up  to  find  out  how  the 
N.R.A.  was  going,  and  leaving  them  with  the  impression  that 
they  might  be  engaged  in  a  kind  of  patriotic  effort  on  the  part 
of  the  Government  ? 

MR.  GRAY.  No,  Sir. 

SENATOR  LA  FOLLETTE.  You  did  not  use  that? 
MR.  GRAY.  I  cannot  recall  using  that  one;  no,  sir. 


THE  GENTLE  ART  OF  HOOKING  55 

SENATOR  LA  FOLLETTE.  I  am  surprised.  You  seem  to  be  a 
very  smart  man. 

MR.  GRAY.  I  am  just  too  smart  to  use  that  one,  because  that  is 
involving  the  Government. 

Maybe  Gray  of  Railway  Audit  was  telling  the  truth  —  maybe  he 
was  too  smart  to  pose  as  a  government  official.  But  there  is  sworn 
testimony  in  the  record  that  a  Pinkerton  operative  did  use  exactly 
that  line  in  trying  to  hook  Charles  Rigby,  an  Auto-Lite  worker  of 
Toledo,  Ohio.  Rigby  would  have  been  a  good  catch  because  he  was 
a  militant  union  man,  chairman  of  his  local.  Perhaps  the  Pinkerton 
operative,  in  his  anxiety  to  hook  a  man  especially  valuable  at  that 
time  because  of  a  strike  situation,  may  be  forgiven  for  not  being  as 
smart  as  Gray.  The  testimony  of  Rigby  was  particularly  dramatic 
because  the  Pink  who  approached  him  was  in  the  Senate  cham- 
ber and  heard  every  word  of  it.  Rigby  pointed  him  out  as  he 
testified. 

SENATOR  THOMAS.  Mr.  Rigby,  has  any  attempt  ever  been 
made  to  hook  you  ? 

MR.  RIGBY.  Yes,  sir;  positively. 

SENATOR  THOMAS.  When? 

MR.  RIGBY.  A  month  and  a  half  after  Bart  Furey  came  into 
the  plant  there  was  a  man  approached  me  at  my  house.  He 
came  into  my  home  and  he  said  he  wanted  to  see  me.  He  was  a 
very  well-educated  man,  dignified.  He  said  he  wanted  to  see 
me  about  something  personal.  My  wife  was  sitting  there  and  I 
said,  "I  am  sorry  but,"  I  said,  "I  will  not  talk  to  you  unless 
my  wife  is  present."  "Well,"  he  said,  "All  right,  it  does  not 
make  much  difference." 

SENATOR  THOMAS.  Did  the  man  give  you  his  name? 

MR.  RIGBY.  Yes. 

SENATOR  THOMAS.  What  was  it? 

MR.  RIGBY.  R.  L.  Bronson.  He  went  on  to  state  he  was  a 
representative  of  the  N.R.A. 


56  THE  LABOR  SPY  RACKET 

SENATOR  THOMAS.  He  said  he  represented  the  N.R.A.? 
MR.  RIGBY.  A  representative  of  the  N.R.A.;  yes,  sir. 
SENATOR  THOMAS.  How  could  anyone  represent  the  N.R.A.  ? 
MR.  RIGBY.  I  do  not  know.  He  was  making  investigations,  an 
investigator  of  the  N.R.A. 

SENATOR  THOMAS.  A  Government  official? 
MR.  RIGBY.  Yes,  sir. 

SENATOR  THOMAS.  Did  he  mention  that  he  was  connected 
with  the  Government? 

MR.  RIGBY.  Yes;  that  he  was  compiling  statistics  regarding 
chiseling  and  where  they  were  paying  low  wages  and  they  were 
working  the  workers  long  hours,  above  the  code,  and  he  said 
the  Government  wanted  that,  and  he  asked  me  if  I  could  be  of 
any  service,  if  I  would  help  him  out.  I  said,  "Certainly,"  I  said, 
"I  don't  see  any  harm  in  that."  I  said,  "Anything  to  help  my 
fellow  workers  or  help  the  Government,"  I  said,  "That  is  my 
duty."  He  said,  "Well,  the  Government  has  appropriated  so 
much  money  to  compile  these  statistics."  I  said,  "Well,  as  far 
as  the  money  is  concerned  I  would  gladly  work  for  nothing  in 
order  to  get  things  straightened  out,  if  I  could  be  instrumental 
in  doing  that  I  would  gladly  do  it  for  nothing."  He  said,  "Well, 
the  Government  does  not  ask  you  to  work  for  nothing."  He 
said,  "We  will  pay  you  $20  a  week."  He  went  on  and  he  talked 
and  talked. 

SENATOR  THOMAS.  By  "we"  did  he  mean  "we"  or  the  Gov- 
ernment will  pay  you  $20  a  week? 

MR.  RIGBY.  The  Government;  the  way  he  talked  to  me  it 
was  the  Government.  As  I  get  it,  they  had  to  send  the  highest 
official.  I  never  knew  it  until  today,  but  they  sent  one  of  the 
highest  officials  of  the  Pinkerton  Detective  Agency  to  frame 
me  and  my  family. 

SENATOR  THOMAS.  Did  you  ever  see  Bronson  again? 

MR.  RIGBY.  I  saw  him  three  times,  three  or  four  times,  and 


THE  GENTLE  ART  OF  HOOKING  57 

the  last  time  he  came  to  my  house  I  told  the  business  agent  [of 
the  union]  .  .  .  and  he  said,  "Charlie,"  he  said,  "you  have 
been  framed."  Well,  after  that  I  thought,  "Well,  I  will  see  him 
again." 

SENATOR  THOMAS.  Did  you  make  any  report  to  Bronson? 

MR.  RIGBY.  Yes;  I  did. 

SENATOR  THOMAS.  How  many? 

MR.  RIGBY.  I  made  reports  for  about  4  weeks. 

SENATOR  THOMAS.  Where  did  you  send  them  ? 

MR.  RIGBY.  I  sent  them  to  Book  Cadillac  Hotel,  Detroit, 
Michigan. 

SENATOR  THOMAS.  Addressed  to  whom  ? 

MR.  RIGBY.  R.  L.  Bronson. 

SENATOR  THOMAS.  What  did  you  say  in  the  reports? 

MR.  RIGBY.  I  just  told  him  .  .  .  where  there  was  chiseling, 
and  he  said  my  reports  are  not  satisfactory,  that  .  .  .  was  not 
what  he  wanted. 

In  the  meantime,  after  this  man  told  me  I  had  been  framed, 
he  came  to  my  house  and  I  looked  at  him  and  I  started  in  on 
him  and  I  told  him  plenty.  I  said,  "Mr.  Bronson,  if  it  is  the 
last  thing  on  earth  I  ever  do  I  will  get  you,  if  you  ever  try  to 
frame  me  and  my  family."  He  stood  there,  just  looked,  a  big 
yellow  rat,  you  know  how  they  are,  and  he  trembled,  and  he 
said,  "Mr.  Rigby,  if  you  take  that  attitude,"  he  said,  "we'll 
forget  the  whole  matter."  I  said,  "WTell,  if  you  ever  cross  my 
path  or  cause  my  family  any  trouble,"  I  said,  "I  will  get  you," 
and  that  man  is  present  in  this  room  today,  and  right  there  he 
is.  (indicating). 

Tense  moment. 

What  would  Bronson  say?  Would  he  admit  the  charge  that  he 
had  posed  as  a  government  official?  Not  a  chance.  The  agency 
crowd  was  admitting  precious  little  —  the  truth  had  to  be  forced 
out  of  them.  Nevertheless,  Bronson  did  confess  to  a  great  deal, 
enough  to  substantiate  Rigby's  story: 


58  THE  LABOR  SPY  RACKET 

SENATOR  THOMAS.  Mr.  Bronson  or  Mr.  Burnside  —  which  is 
your  proper  name? 

MR.  BURNSIDE.  Burnside,  Senator. 

SENATOR  THOMAS.  Will  you  state  your  occupation  .  .  .    ? 
MR.  BURNSIDE.  I  am  assistant  superintendent  in  the  Detroit 
office  of  the  Pinkerton  Detective  Agency. 

SENATOR  THOMAS.  How  many  names  have  you  used  in  your 
occupation  for  covering  yourself,  Mr.  Burnside? 

MR.  BURNSIDE.  Oh,  I  have  used  a  great  many  names,  Senator. 
I  have  been  in  the  agency  a  great  many  years  and  necessarily 
our  work  requires  using  an  alias  a  great  many  times. 

SENATOR  THOMAS.  Name  some  of  them. 

MR.  BURNSIDE.  Well  I  have  used  the  name  of  Bronson  and  I 
have  used  the  name  of  Brunswick  —  oh,  a  number  of  them.  I 
generally  use  a  name  with  the  same  initials  as  mine,  because  it 
makes  it  easy  to  remember.  It  is  customary  in  detective  prac- 
tice. 

SENATOR  THOMAS.  Do  you  recognize  Mr.  Rigby? 

MR.  BURNSIDE.  YeS. 

SENATOR  THOMAS.  You  heard  his  testimony? 

MR.  BURNSIDE.  YeS,  Sir. 

SENATOR  THOMAS.  Are  the  things  which  he  has  said  true? 

MR.  BURNSIDE.  No,  sir. 

SENATOR  THOMAS.  In  what  particular  are  they  not  true? 

MR.  BURNSIDE.  Well,  in  a  number  of  particulars.  In  the  first 
place,  the  fact  that  he  stated  I  was  a  Government  officer  is 
incorrect. 

SENATOR  THOMAS.  What  did  you  state  you  were? 

MR.  BURNSIDE.  I  told  him  that  I  represented  certain  people 
who  were  interested  — 

SENATOR  THOMAS,  (interrupting)  What  people? 


THE  GENTLE  ART  OF  HOOKING  59 

MR.  BURNSIDE.  I  did  not  tell  him.  I  was  not  afraid  to  tell  him 
that,  because  of  the  nature  of  the  work,  but  I  told  him  I  repre- 
sented certain  people  who  were  interested  in  getting  this  in- 
formation that  I  spoke  to  him  about. 

SENATOR  THOMAS.  Did  you  represent  certain  people? 

MR.  BURNSIDE.  I  represented  ourselves,  yes;  our  agency. 

SENATOR  THOMAS.  Did  you  imply  that  those  certain  people 
were  people  that  were  interested  in  the  enforcement  of  the 
N.R.A.  law? 

MR.  BURNSIDE.  It  has  been  a  couple  of  years  ago,  Senator. 
As  I  recall  it,  I  told  him  that  we  were  interested  in  getting  this 
information  as  to  the  violation  of  codes,  chiseling,  and  any 
discrimination,  violations  in  general  of  the  practices  laid  down 
at  that  time. 

SENATOR  THOMAS.  Did  you  ever  use  the  name  of  the  Pinker- 
ton  Detective  Agency  in  his  presence? 

MR.  BURNSIDE.  No. 

SENATOR  THOMAS.  You  tried  to  sneak  up  on  him,  as  it  were, 
did  you  ? 

MR.  BURNSIDE.  Well,  "sneak"  is  not  a  very  pleasant  word. 

SENATOR  THOMAS.  Well,  name  your  word  for  it. 

MR.  BURNSIDE.  I  wanted  to  make  sure  that  Mr.  Rigby  had 
the  necessary  aptitude,  and  so  on,  for  our  work  before  I  told 
him  definitely  who  we  were.  He  appeared  to  be  the  type  of  man 
that  we  could  use. 

SENATOR  THOMAS.  You  assumed  he  was  worth  $20  a  week 
anyway  ? 

MR.  BURNSIDE.  YeS. 

SENATOR  THOMAS.  Is  that  your  judgment? 

MR.  BURNSIDE.  As  a  preliminary  arrangement;  yes.  He  was  a 
young  man  who  appeared  to  be  highly  intelligent,  as  I  presume 
you  will  all  grant  me,  he  was  a  chap  that  was  loyal  to  his  family 
all  the  way  through  and  appeared  to  be  100  per  cent  depend- 
able and  the  type  of  man  that  I  could  have  used. 


60  THE  LABOR  SPY  RACKET 

Burnside,  Pinkerton  operative,  was  trying  to  make  a  spy  out  of 
Rigby.  It  was  not  his  practice  to  hook  just  any  worker.  Not  at  all. 
Rigby  was  to  be  given  the  honor  of  spying  on  his  fellow  workers 
because  he  was  just  the  right  type  of  man  for  the  job — highly 
intelligent,  loyal,  dependable.  No  ordinary  person  would  do.  The 
Pinkertons  made  it  a  practice,  before  attempting  to  make  a  stool- 
pigeon  out  of  an  honest  workman,  to  be  sure  that  he  was  honest. 
At  least  that's  their  story.  Mr.  Rossetter,  general  manager,  also 
testified  that  they  were  concerned  about  the  character  of  their 
informants.  "We  make  inquiries  in  the  neighborhood  in  which 
they  live  to  learn  what  their  standing  in  the  community  is,  whether 
they  are  considered  honest,  trustworthy,  law-abiding  people." 
Evidently  only  the  best  people  were  considered  qualified  for  the 
job  of  selling  out  their  fellow  workers. 

Perhaps  it  was  a  coincidence  that  these  best  people  with  good 
character  were  also  important  in  their  union.  This,  the  Pinkertons 
argued,  was  of  no  especial  significance,  a  mere  happen-so.  Maybe. 
Charles  Rigby  was  a  prominent  union  man.  And  so  was  Charles 
Forwerck,  also  of  Toledo,  and  also  one  of  Burnside's  prospects. 
On  the  stand  Burnside  told  a  similar  story  about  his  unsuccessful 
attempt  to  hook  Forwerck,  worker  in  the  Libbey-Owens  Ford  Glass 
Company,  and  on  the  executive  board  of  the  union.  This  time,  ac- 
cording to  Forwerck's  affidavit,  Burnside  posed  as  the  representa- 
tive of  some  Detroit  attorneys  who  in  turn  represented  one  of  the 
largest  motor  corporations.  Same  palaver  about  not  wanting  any 
information  that  would  hurt  anybody  in  any  way  etc.  etc.;  same 
offer  of  money  for  the  reports  —  this  time,  however,  only  $60  a 
month  (compared  to  Rigby's  $20  a  week).  It  appears  that  Burnside 
underrated  this  new  prospect.  There  is  little  doubt  that  Forwerck 
could  have  made  a  first  class  spy;  as  a  matter  of  fact  he  did  a  tip- 
top job  on  Burnside  himself!  Here  is  Forwerck's  account  from  the 
record: 

He  did  not  want  to  talk  in  front  of  my  wife,  and  as  a  result  I 
decided  to  find  out  what  I  could  about  him.  After  he  left  the 


THE  GENTLE  ART  OF  HOOKING  61 

house,  I  saw  him  walk  over  toward  a  car,  several  blocks  away 
and  I  got  into  my  car,  turned  the  corner,  and  caught  up  with 
him  as  he  was  driving  in  his.  I  noted  down  the  license  number, 
an  Ohio  license,  9562-0.  He  was  driving  a  1934  Pontiac  sedan, 
green-colored.  He  had  previously  told  me  that  his  name  was 
Blackburn.  I  checked  his  license  number  with  the  Automobile 
Club  in  Toledo  and  discovered  that  the  license  had  been  issued 
to  Ray  L.  Burnside,  of  4591  Westway.  I  checked  with  the 
telephone  book  and  found  his  number  to  be  Lawndale  1565. 

Now  this,  you  will  grant,  was  not  a  bad  piece  of  work  for  an 
amateur  sleuth.  But  just  imagine  ...  if  only  Forwerck  had  been 
possessed  of  that  extra  amount  of  character  which  the  agency  found 
a  man  needed  to  become  a  high-grade  stool  pigeon !  Then,  under  the 
expert  guidance  of  Burnside  and  the  other  famous  Pinks,  what  a 
career  would  have  been  his  —  perhaps  he  would  have  become  the 
greatest  labor  spy  in  American  history !  How  unfortunate  that  this 
worker  who  had  come  through  the  preliminary  Pinkerton  investi- 
gation of  his  special  qualifications  of  honesty,  loyalty  and  trust- 
worthiness, with  flying  colors,  should  at  the  crucial  moment  fail 
them  —  all  because  of  some  silly  notion  in  his  mind  that  it  was  a 
dirty  trick  to  spy  on  his  fellow  workers. 

Don't  make  the  mistake  of  supposing  that  the  Pinkertons  lied 
when  they  said  they  made  inquiries  into  the  character  of  the  men 
they  were  about  to  hook.  They  definitely  do  make  an  intensive 
investigation,  as  Mr.  George  A.  Patterson,  a  steel  worker  at  the 
Carnegie-Illinois  Steel  Company  in  Chicago  found  out  to  his 
amazement.  Perhaps  it  was  again  just  a  coincidence  that  besides 
being  a  man  of  good  character,  Mr.  Patterson  was  also  a  strong 
union  man  who  was  both  an  employees'  representative  in  the  com- 
pany union  and  president  of  the  Independent  Steel  Organization 
which  rose  up  in  rebellion  against  the  company  union.  Mr.  Patter- 
son's story  is  the  familiar  one:  invalid  sister,  indicating  need  of 
money;  key  man  in  the  union;  harmless  sales  talk  about  reports 
that  would  harm  nobody.  The  only  new  feature  is  the  surprising 


62  THE  LABOR  SPY  RACKET 

degree  to  which  Mr.  Patterson  had  been  investigated.  Mr.  Pat- 
terson on  the  witness  stand: 

On  Lincoln's  Birthday  I  returned  from  work  and  I  found  a 
heavy  burly  man  in  my  home.  I  was  quite  upset  about  it.  I 
wanted  to  know  how  this  man  got  in  my  home.  It  so  hap- 
pened that  I  have  an  invalid  sister  who  is  at  home  at  all  times, 
and  she  happened  to  allow  this  man  in.  I  felt  rather  mad  to 
find  this  stranger  in  my  house.  So  I  asked  him  what  his 
business  was.  He  said  he  had  a  proposition  to  make  to  me.  I 
could  not  understand  what  he  had  to  do  with  me.  So  he  took 
me  aside  into  my  little  kitchenette  in  the  apartment  and 
started  a  very  fluent  salesmanship  talk.  He  said  that  he  repre- 
sented the  Fidelity  Bond  Company  of  the  Empire  State 
Building,  New  York,  and  he  went  on  to  state  how  interested 
they  were  in  trying  to  increase  the  profits  of  the  stockholders, 
and  that  he  believed  that  there  was  trouble  between  em- 
ployees and  managers,  and  that  he  thought  I  could  help. 

I  did  not  say  very  much  but  I  listened  to  his  story.  He  was 
very  forceful,  and  after  a  while  I  asked  him  what  I  could  do 
to  help  him  in  any  way,  he  stated  that  I  was  a  man  of  very 
good  character,  how  they  had  investigated  me  and  knew  I 
had  worked  for  almost  12  years  with  the  Illinois  Steel  Com- 
pany—  the  Carnegie-Illinois  Steel;  it  is  merged  now  —  and 
he  knew  I  had  been  in  the  roll-shop  department;  he  could  tell 
all  about  me  .  .  .  He  could  tell  me  I  was  a  good  church 
member,  that  I  was  general  superintendent  of  the  Sunday 
school  where  I  attended,  and  so  on.  The  man  evidently  had 
investigated  my  character  ...  In  fact,  he  knew  almost  as 
much  about  myself  as  I  did.  When  he  got  through  he  said, 
"How  would  you  like  to  do  this  for  us?  We  will  not  ask  you  to 
do  anything  for  us  that  will  get  you  into  trouble.  Just  go 
about  your  business  in  the  usual  way  and  make  reports."  By 
this  time  I  thought  this  was  a  very  peculiar  situation,  and  I 
felt  kind  of  peculiar.  He  sort  of  repulsed  me,  because  I  had 


THE  GENTLE  ART  OF  HOOKING  63 

never  been   approached    in    any   way   by   anybody   like    him 
before. 

Mr.  Patterson  was  evidently  a  newcomer  to  the  trade  union 
movement.  Probably  this  was  the  first  time  he  had  held  office  in 
a  union.  To  older,  more  experienced  labor  leaders,  hooking  is  not 
new.  They  have  known  of  it  for  many  years  and  many  of  them  have 
met  with  it,  personally.  They  know  how  to  handle  it.  They  report 
immediately  to  the  union. 

Mr.  Carl  Holderman,  the  district  manager  for  the  American  Full- 
Fashioned  Hosiery  Workers,  had  been  " contacted"  several  times 
so  he  knew  what  to  expect  when,  in  1929,  he  was  visited  by  a  Mr. 
Ralph  Robinson  "representing  the  American  Bankers  Associa- 
tion." Mr.  Holderman  was  a  top  ranking  officer,  not  in  a  local  un- 
ion, but  in  the  national  organization.  Don't  be  surprised,  then,  to 
learn  that  as  vice  president  of  the  national  organization  he  was 
worth  more  than  the  ordinary  hooked  man.  "He  offered  $150  a 
month  [more  than  the  others  were  offered,  but  not  a  patch  on  the 
rake-off  of  James  C.  Cronin,  one-time  President  of  the  Central 
Labor  Union  of  Philadelphia,  who  was  paid  $200  a  week  for  his 
services  as  Operative  03]  if  I  would  be  willing  to  supply  them  with 
information  as  to  possible  strike  situations  that  might  occur  in  the 
near  future  ...  I  immediately  got  in  touch  with  the  officers  of 
our  union,  and  we  decided  to  see  what  else  he  had  to  offer." 

Mr.  Phil  E.  Ziegler,  the  secretary-treasurer  of  the  Brotherhood  of 
Railway  Clerks,  was  another  labor  leader  who  was  on  to  the  hook- 
ing activities  of  the  spy  agencies.  When  the  night  watchman  of  the 
building  owned  by  the  Railways  Clerks  informed  him  that  he  had 
been  approached  by  a  Mr.  Bradley,  Mr.  Ziegler  knew  what  to  do. 
He  had  Jones  play  along  with  Bradley  (real  name,  Samuel  H. 
Brady,  Pinkerton  superintendent  of  the  Cincinnati  office)  until 
they  got  the  goods  on  him.  Bradley-Brady  pulled  the  familiar  line 
with  a  new  slant,  "On  our  Executive  Board  we  have  fifty  men  (50), 
we  have  certain  state  Senators,  Congressmen  and  many  prominent 
men  such  as  Charles  Evans  Hughes,  Henry  Ford,  John  D.  Rocke- 


64  THE  LABOR  SPY  RACKET 

feller,  Dr.  Parkes  S.  Cadman,  Father  Ryan,  Dr.  Finney,  the  great 
surgeon  .  .  ."  The  union  officials  were  not  convinced. 

Don't  get  the  impression  from  these  unsuccessful  attempts  at 
hooking,  that  the  agencies  always  fail.  They  often  succeed.  Too 
often.  Sometimes,  as  you  can  imagine,  their  success  means  the 
ruination  of  the  hooked  man's  life.  Often  the  men  of  character 
that  they  so  carefully  choose,  to  trick  into  becoming  spies,  go  stead- 
ily to  pieces  until  there  is  little  character  left  in  them.  Occasionally 
a  hooked  man  is  able  to  break  away  from  the  agency,  make  peace 
with  his  conscience,  and  start  life  all  over  again.  More  often  they 
remain  trapped.  One  of  the  most  pitiful  instances  of  the  terrible 
harm  done  by  hooking  is  the  case  of  the  young  man  who  never 
could  get  over  the  feeling  of  horror  within  himself  that  he  had  be- 
trayed his  fellow  workers.  Even  after  making  a  clean  breast  of  his 
spying  activities,  even  after  being  absolved  of  all  blame  by  the 
union  heads,  he  was  so  overcome  with  remorse  and  shame  that  if  by 
chance  he  would  pass  a  vegetable  store  window  in  which  the  sign 
"Northern  Spy"  apples  was  displayed,  he  would  break  out  into 
a  cold  sweat  and  his  heart  would  pound  like  a  trip-hammer. 

Hooking  is  the  method  most  commonly  employed  when  the 
agency  finds  it  necessary  to  use  as  its  informant  one  of  the  workers 
already  in  the  factory.  But  sometimes  the  plant  setup  is  such  that 
an  outside  operative  can  be  brought  in  without  causing  undue 
suspicion.  The  agencies  usually  recruit  these  outside  operatives  by 
the  "blind  ad"  method: 

SENATOR  LA  FOLLETTE.  How  do  you  get  operatives  when 
you  need  new  ones  ? 

MR.  ROSS.  Why  we  are  constantly  recruiting  them,  under 
ordinary  circumstances,  by  advertising  and  through  blind  ads, 
and  then  we  interview  them  and  we  select  them  through  the 
process  of  elimination.  We  have  them  write  reports,  giving 
them  subjects  to  write  on,  give  them  a  talk  and  just  let  them 
come  back  and  see  how  much  of  it  they  get.  A  mental  test,  I 
should  say  it  was. 


THE  GENTLE  ART  OF  HOOKING  65 

Unemployed  workers  hunting  for  jobs  turn  to  the  Help  Wanted 
section  of  the  newspapers.  You  know  what  they  find  there: 

HELP  WANTED 

MACHINIST:  General  all-round  machinist;  preferably 
experienced  with  big  tools  and  heavy  work;  hourly  rate 
and  bonus.  Give  shop  experience,  age  and  phone.  Box  524. 
Press. 

PLANER  HANDS:  Heavy  work,  expansion  program; 
highest  hourly  rate  to  producers ;  give  details  of  experience, 
references  and  phone.  Box  13772.  Plain  Dealer. 
RUBBER  WORKERS:  On  sundries  and  specialties;  can 
make  up  to  80^f  per  hour,  depending  on  production.  Explain 
class  of  work,  machines  experienced  on,  age  and  phone 
number.  Box  7372.  Plain  Dealer. 

STRANDERS:  And  roughers  for  merchant  mill  on  round, 
hex  and  square  stock;  hourly  rate  plus  tonnage.  In  reply 
give  description,  full  history  and  phone.  Address  Box  6418. 


These  are  real  ads  taken  from  The  Cleveland  Press  and  Cleveland 
Plain  Dealer.  They  look  like  any  other  ads.  But  they  are  not.  For 
the  unemployed  worker  who  hopefully  writes  to  any  one  of  these 
Box  Numbers,  they  may  be  dynamite.  These  four  harmless  looking 
offers  of  jobs  were  "blind  ads"  inserted  by  the  Corporations  Auxil- 
iary Co.  They  were  the  bait  to  lure  workers  hungry  for  jobs  into 
the  agency  trap. 

Any  applicant  who  writes  an  intelligent  reply  to  a  blind  ad  is 
notified  to  call  for  an  interview  at  a  stated  address.  The  name  on 
the  door  of  the  office  may  be  John  Smith  Company  or  Green  Engi- 
neering Corporation  or  any  name  —  except  the  name  of  the  detec- 
tive agency.  The  job-seeker  is  then  given  a  "mental  test,"  i.e.,  he 
may  be  asked  to  write  a  detailed  report  then  and  there  of  what  he 
did  that  day,  including  all  the  people  he  talked  to  and  what  they 
said;  or  he  may  be  given  an  ordinary  literacy  test,  etc.  If  the  inter- 
viewer is  satisfied  that  he  is  capable,  he  is  told  that  a  job  will  be 
found  for  him  at  such  and  such  a  factory;  he  will  receive  his 
wages  for  his  work  at  the  factory,  and  an  additional  sum  for  the 
daily  reports  he  is  to  write.  The  applicant  next  applies  at  the 


66  THE  LABOR  SPY  RACKET 

factory,  is  given  the  job  at  once,  and  his  career  as  stool-pigeon  is 
begun. 

The  whole  procedure  from  beginning  to  end,  from  blind  ad  to 
union-smashing  is  beautifully  illustrated  in  two  affidavits  from  the 
record.  The  first  is  the  story  of  John  Mohacsi,  a  machinist  who 
answered  a  blind  ad  and  was  molded  into  a  spy;  the  second  is  a 
union  official's  account  of  Mohacsi's  activities  as  a  spy. 

John  Mohacsi,  being  duly  sworn  deposes  and  says: 

That  I  reside  at  30-26  49th  Street,  Astoria,  Long  Island, 
New  York.  That  the  following  statements  are  made  of  my  own 
free  will  and  accord. 

I  have  been  working  as  a  machinist  since  1919.  I  started  as 
an  apprentice  in  the  Trenton  shop  of  the  Pennsylvania  Rail- 
road and  have,  since  that  time,  worked  in  many  of  the  com- 
panies throughout  the  metropolitan  area  as  an  experienced 
machinist  and  tool  and  die  maker. 

In  and  about  May  1935,  while  I  was  employed  by  the 
Atlantic  Base  and  Iron  Works  of  Brooklyn,  New  York,  I  an- 
swered an  advertisement  in  the  New  York  American,  a  paper 
published  daily  in  the  city  of  New  York,  calling  for  an  ex- 
perienced machinist.  I  received  a  letter  on  the  letterhead  of 
the  Atlantic  Production  Company,  1775  Broadway,  New 
York  City,  to  come  in  for  an  interview.  I  was  interviewed  by  a 
Mr.  J.  C.  Carter,  of  that  office  who  stated  that  his  was  a  firm 
of  consulting  engineers  and  that  if  they  placed  me  on  a  job  I 
would  have  to  report  as  to  the  conditions  existing  in  the  plant. 
I  was  also  given  a  literacy  test. 

I  heard  no  more  from  this  Atlantic  Production  Company 
until  November  1935,  when  I  again  received  a  letter  from  Car- 
ter on  the  letterhead  of  that  company.  I  was  then  employed 
by  the  Fairchild  Aerial  Camera  Corporation  of  Woodside, 
Long  Island,  N.  Y.  I  was  then  again  interviewed  by  J.  C. 
Carter  and  told  that  they  had  a  job  for  me.  The  job  was  with 
the  Worthington  Pump  Company  at  Harrison,  New  Jersey. 


THE  GENTLE  ART  OF  HOOKING  67 

I  was  to  be  employed  as  a  tool  maker  at  78^  per  hour.  In  addi- 
tion to  this  I  was  to  get  $50.00  per  month  for  my  reports  to 
the  Atlantic  Production  Company  from  Carter. 

I  was  given  instructions  by  Carter  that  I  was  to  make  re- 
ports every  day  concerning  the  type  of  men  I  was  working 
with;  whether  any  of  the  men  were  constantly  complaining 
about  conditions;  to  get  to  know  what  my  fellow  workers 
were  thinking  about  and  their  attitude  toward  their  pay  and 
working  conditions.  I  was  also  told  that  when  I  incorporated 
any  of  the  complaints  of  the  men,  I  was  to  make  sure  to  state 
the  names  of  the  men.  I  was  told  to  report  what  "I  see"  and 
what  "I  hear".  I  was  told,  in  January  1936,  by  L.  H.  (Pat 
Stewart)  to  join  the  union  and  to  make  myself  a  leader  among 
the  men  so  as  to  influence  their  attitude  toward  their  em- 
ployer. I  was  also  asked  to  report  what  fraternal  lodge  or  union 
most  of  the  men  belonged  to;  how  it  affects  their  work  and  my 
specific  instructions  stated  that  if  I  thought  my  acquaintance 
might  be  widened  by  joining  the  lodge  or  union,  to  contact 
that  Atlantic  Production  Company  about  the  matter.  I  was 
also  instructed  that  if  I  was  able  to  be  elected  from  my  de- 
partment as  a  delegate  to  the  lodge,  I  should  do  so  in  order 
that  I  may  become  a  real  leader  among  the  men. 

I  was  given  a  letter  to  Mr.  Bennett,  general  manager  of 
the  Worthington  Pump  Company  and  was  in  turn  turned 
over  to  the  employment  manager.  After  three  weeks  of  mak- 
ing reports,  I  was  turned  over  to  Pat  Stewart.  Up  until  Jan- 
uary 20,  1937,  when  I  made  my  last  report,  my  contact  was 
with  Pat  Stewart. 

On  or  about  January  4th,  1936,  Pat  Stewart  sent  me  a  letter 
to  come  in  to  see  him.  In  the  ordinary  course  of  my  work,  I 
would  make  personal  visits  bi-monthly  to  the  office  to  report. 
When  I  came  to  the  office,  I  noticed  that  the  name  Atlantic 
Production  Company  was  no  longer  on  the  door,  and  there  ap- 
peared the  name  International  Auxiliary  Corporation.  At  this 
time,  Pat  Stewart  told  me  that  he  wanted  me  to  join  the  union 


68  THE  LABOR  SPY  RACKET 

which  was  organizing  at  the  plant.  He  handed  me  the  applica- 
tion card  of  the  Tool,  Die,  and  Metal  Workers*  Union  of  which 
Mr.  Rubicz  was  the  organizer.  This  union  later  became  a  local 
of  the  I.A.M.  affiliated  with  the  A.  F.  of  L.,  local  #1560. 
He  told  me  that  I  was  to  join  up  with  the  union  and  to  make 
detailed  reports  of  what  went  on  at  the  meetings. 

Thereafter  I  wrote  out  an  application  for  membership  to  the 
union  and  became  a  member  of  same.  Twice  a  month  I  would 
send  in  detailed  reports  on  the  meetings  of  the  union  ...  In 
accordance  with  my  instructions  from  Pat  Stewart,  I  reported 
on  any  radicals  found  in  the  plant  or  in  the  union.  In  accord- 
ance with  these  instructions,  I  did  report  the  names  and  identi- 
ties of  any  such  radicals  .  .  . 

JOHN  MOHACSI. 

That  Mohacsi  carried  out  his  instructions  to  report  on  "radicals" 
is  proven  by  the  following  affidavit.  It  proves  also  that  he  had  been 
taught  the  customary  agency  definition  of  a  radical  —  a  man  who 
belongs  to  a  union. 

Steve  Rubicz,  being  duly  sworn  deposes  and  says: 
That  I  am  business  representative  of  Unity  Lodge  #1560  of 
the  International  Association  of  Machinists  affiliated  with  the 
A.  F.  of  L.,  315  Plane  Street,  Newark,  New  Jersey.  That  I 
was  business  agent  of  the  Machinists,  Tool  and  Foundry 
Workers  local  401  which  later  became  the  present  Unity  Lodge 
#1560  of  the  International  Association  of  Machinists. 

John  Mohacsi,  in  January  1936,  wrote  in  an  application  for 
membership  in  what  was  then  the  Machinists,  Tool  and 
Foundry  Workers  local  401.  He  stated  that  he  was  employed 
in  the  Worthington  Pump  Company.  At  that  time  we  had 
about  1 8  members  in  the  tool  room  of  the  Worthington  Pump 
Company.  A  few  weeks  after  Mohacsi  became  a  member,  these 
men  came  to  see  me  and  told  me  that  they  were  dropping 
their  union  membership.  They  stated  that  they  had  been  in- 
formed by  the  company  that  it  knew  that  they  were  members 


THE  GENTLE  ART  OF  HOOKING  69 

of  the  union  and  that  they  know  all  about  the  activities  of  the 
union.  They  were  warned  by  the  company  that  they  had  better 
drop  their  membership  if  they  wanted  to  retain  their  positions. 
I  am  not  stating  the  names  of  the  men  because  of  the  fact  that 
they  are  still  employed  by  the  company  and  it  might  jeopardize 
their  positions  if  their  names  were  stated.  Practically  all  of  the 
1 8  resigned  from  the  union.  It  was  common  knowledge  among 
the  employees  of  the  Worthington  Pump  Company  that  the 
company  was  in  a  position  of  knowing  whether  or  not  they  did 
join  the  union. 

In  or  about  May  1936  this  local  amalgamated  with  the 
International  Association  of  Machinists  and  became  local 
#1560.  In  and  about  September  1936,  two  members  of  our 
local  secured  positions  at  the  Worthington  Pump  Company. 
Within  two  weeks  they  were  both  discharged  without  any 
reason  having  been  given.  Their  names  of  course  were  known 
to  Mohacsi  and  he,  no  doubt,  reported  this  to  the  company. 

Many  of  the  employees  of  the  Worthington  Pump  Company 
who  have  been  with  the  company  many  years,  have  expressed 
a  desire  to  join  the  union.  But  they  have  stated  to  me  that  they 
could  not  join  because  of  the  spy  system  of  the  company  which 
would  jeopardize  their  positions.  For  this  reason  the  union  has 
been  unable  to  organize  or  secure  any  members  in  the  said 
company.  Mohacsi  has  been  exposed  as  a  spy  in  the  employ  of 
the  International  Auxiliary  Corporation. 

STEVE  RUBICZ 

Unemployed  workers  scan  the  Help  Wanted  section  of  the  news- 
papers and  apply  for  jobs  for  which  they  are  qualified.  They  need  the 
jobs.  They  are  out  of  work  and  must  have  money.  The  jobs  are 
offered  them  —  with  the  seemingly  harmless  string  attached,  that 
they  must  write  secret  reports.  Before  long  they  are  lured  into  the 
agency  trap.  They  have  become  stool-pigeons. 

Factory  workers  whose  wages  are  not  enough  to  meet  their  needs 
are  offered  extra  money  for  writing  seemingly  innocent  reports. 


7° 


THE  LABOR  SPY  RACKET 


Before  long  they  are  lured  into  the  agency  trap.  They  are  hooked. 
They  have  become  stool-pigeons. 

In  this  manner  thousands  of  innocent  men  have  been  ensnared 
into  becoming  spies.  In  similar  fashion,  thousands  of  innocent  girls 
have  been  trapped  into  becoming  prostitutes.  Is  there  any  material 
difference  between  the  agency  operative  hooking  an  innocent 
worker,  and  the  pimp  hooking  an  innocent  girl?  Even  the  money 
returns  to  the  principals  are  comparable  —  the  incomes  of  the 
heads  of  the  large  spy  agency  chains  would  not  be  sneered  at  by 
any  head  of  a  chain  of  brothels.  The  two  "industries"  are  alike  in 
technique,  profits,  morals  and  ethics. 


V.  The  Rats'  Code 


JOHN  ANDREWS  was  paid  $40  a  month  for  spying  on  his  pal 
Dick  Frankensteen.  That's  $480  a  year.  Rigby  was  offered  $20  a 
week.  That's  $1040  a  year.  Roszel,  Mohacsi,  Shults  and  the  others 
probably  fall  somewhere  in  between.  Now  $480  to  $1000  is  not  a 
great  deal  of  money.  But  the  spying  business  is  like  every  other 
business  in  capitalist  society  —  low  wages  to  the  men  who  do  the 
actual  work,  and  huge  returns  to  the  directors  and  owners.  While 
Andrews  was  receiving  $480  for  his  year's  work,  one  of  his  bosses, 
Dan  Ross,  the  general  manager,  was  receiving  over  100  times  as 
much  —  $50,000.  And  that  wasn't  all  —  for  Ross.  The  pattern  among 
our  big  industrialists  is  to  throw  in  a  reward  —  to  themselves  —  for 
the  fine  work  their  employees  have  done.  Corporations  Auxiliary 
was  no  exception.  Besides  his  $50,000  a  year  salary,  Ross  was 
given  a  bonus  of  10%  of  the  gross  receipts.  Not  a  bad  arrangement 
for  Mr.  Ross  as  you  can  see  from  a  glance  at  the  gross  annual  in- 
come of  Corporations  Auxiliary: 

1933 $284,847. 78 

1934 $489,131.11 

1935 $518,215.26 

Take  10%  of  each  of  those  figures  and  add  it  to  $50,000  and  you 
have  Mr.  Ross's  annual  income.  Notice  that  this  bonus  scheme 
stimulated  Mr.  Ross  to  get  more  work  out  of  his  employees  every 
year,  so  that  by  1935  he  had  really  made  good:  his  total  salary  for 
that  year  was  higher  than  that  of  the  President  of  the  United 
States! 

Nor  did  the  general  manager  get  all  the  pickings.  There  was  still 
enough  money  left  in  the  Corporations  Auxiliary  safe  to  take  care 
of  the  other  big  shots  in  the  firm.  Mr.  James  H.  Smith,  "harmoniz- 


72  THE  LABOR  SPY  RACKET 

ing-conditions"  Smith,  the  president  of  Corporations  Auxiliary  and 
its  subsidiaries,  was  not  left  out  in  the  cold.  According  to  his  testi- 
mony he  was  supposed  to  get  $15,000  a  year  from  each  of  five 
operating  companies.  That  would  give  him  $75,000  annually,  but 
for  some  reason  which  he  didn't  explain,  he  drew  down  only  $48,000 
in  1935.  But  before  you  begin  to  worry  about  whether  Smith  could 
live  on  that  paltry  sum,  remember  that  was  just  his  salary  —  his 
bonus  and  dividends  are  not  counted  in. 

Mr.  Weber,  the  secretary  and  treasurer  of  the  outfit,  must  have 
enjoyed  himself  as  he  counted  the  money  due  him  in  1935  —  $30,- 
ooo.  That  came  to  a  little  less  than  $600  a  week.  It  wasn't  even  a 
third  of  what  he  had  to  count  out  for  Ross;  nevertheless  it  was 
enough  to  scrape  along  on,  and  since  the  business  was  growing  Mr. 
Weber  could  hope  for  a  raise. 

The  Pinkertons  did  a  bigger  business.  Their  gross  annual  income 
for  1933  to  1935  was  as  follows: 

1933 $1,466,530.54 

1934 $2,187,240.52 

1935 $2,318,039.18 

Their  income  from  their  industrial  service  alone  was  almost  twice 
as  much  as  the  gross  annual  income  of  Corporations  Auxiliary.  In 
1934  it  was  approximately  $900,000;  in  1935,  approximately  $i,- 
000,000;  and  for  the  first  7  months  of  1936  it  was  approximately 
$550,000. 

But  in  spite  of  their  huge  volume  of  business,  Pinkerton's  salary 
situation  was  something  frightful.  Mr.  Rossetter,  who  told  a  touch- 
ing story  of  how  he  had  worked  himself  down  from  office  boy  to 
chief  clerk,  to  operative,  to  assistant  superintendent,  and  finally  to 
general  manager,  was  grossly  underpaid.  In  1935  his  salary  was  a 
measly  $10,000  and  his  bonus  a  mere  $2,000.  Only  $12,000  a  year! 
Compare  the  salaries  of  Pinkerton's  Rossetter  to  Corporations' 
Ross  and  the  injustice  becomes  apparent  at  once.  It's  almost  as 
though  Rossetter  were  still  an  office  boy. 

And  the  worst  of  it  was  that  Rossetter  couldn't  complain.  It 
would  have  been  different  if  Mr.  Robert  A.  Pinkerton,  the  presi- 


THE  RATS'  CODE  73 

dent  of  the  agency,  were  drawing  a  huge  salary.  But  he  wasn't.  Mr. 
Rossetter  knew  that  what  little  work  President  Pinkerton  did,  he 
did  for  nothing.  Mr.  Pinkerton  received  no  salary  at  all.  It  was 
true,  of  course,  that  the  agency,  in  1935,  declared  a  dividend  of 
$185,000.  It  was  true,  too,  that  Mr.  Pinkerton's  slice  of  that  divi- 
dend melon  was  $129,500.  But  since  Mr.  Pinkerton  owned  70%  of 
the  stock  in  the  agency,  the  $129,500  was  justly  due  him.  Rossetter 
was  experienced  enough  in  business  to  know  that  it  is  customary 
and  proper  for  the  lion's  share  to  go  to  the  men  who  own,  not  to  the 
men  who  work. 

Now  if  you  have  been  squirming  as  you  read  about  these  salaries 
because  your  own  annual  income  looks  tiny  by  comparison,  re- 
member that  America  is  still  the  land  of  opportunity.  You  too, 
have  a  chance  to  crash  into  the  Big  Money.  The  way  is  clear  — 
but  it  means  hard  work.  Are  you  willing  to  apply  yourself?  Are  you 
willing  to  spend  fifteen  minutes  a  day  in  earnest  study  ?  If  you  are, 
then  the  Road  to  Success  lies  before  you.  An  unusual  career  is  open 
to  ambitious  young  men  and  women  —  the  Chance  of  a  Lifetime  — 
the  opportunity  to  become  a  Stool-Pigeon.  The  National  Manu- 
facturers Syndicate,  an  affiliate  of  the  Sherman  Service,  tells  you 
how.  All  you  need  do  is  enroll  for  their  correspondence  course,  then 
study,  study,  study.  Here  are  a  few  sample  instructions  from  their 
24-page  booklet  entitled  "Correspondence  Course  of  Training  for 
an  Industrial  Operative": 

FIRST  INSTRUCTION  SHEET 

There  is  nothing  about  your  relationship  with  your  fellow 
workers  which  can  be  considered  underhand  or  deceitful  .  .  . 
Our  work  is  most  honorable,  humanitarian,  and  very  impor- 
tant, and  must  be  recognized  as  such. 

SECOND  INSTRUCTION  SHEET 

It  is  very  plain  that  in  order  for  us  to  be  successful  we  must 
conduct  our  work  in  an  invisible  manner.  The  ordinary  worker, 
in  his  ignorance,  is  apt  to  misunderstand  our  motives  if  he 


74  THE  LABOR  SPY  RACKET 

knows  of  our  presence  and  identity  in  the  plant.  You  will 
really  be  engaged  in  human  engineering  —  but  in  order  that 
you  may  succeed,  no  one  is  to  know  of  your  association  with 
us  or  the  character  of  work  which  you  are  doing. 

THIRD  INSTRUCTION  SHEET 

The  rules  and  regulations  of  our  organization  exclude  even 
one's  close  friends  and  families  from  any  knowledge  as  to  the 
details  of  any  assignments  a  representative  may  receive  .  .  . 

It  will  be  your  duty  to  make  up  and  mail  in  a  detailed  report 
for  each  day  as  to  when  you  begin  work,  when  you  quit,  what 
you  did,  what  you  saw,  and  what  you  heard  in  connection  with 
the  particular  assignment  in  which  you  were  engaged  .  .  . 

You  will  receive  frequent  instructions  from  us  which  you 
are  to  mail  back  to  us  together  with  envelope  in  which  it  was 
sent  as  soon  as  you  have  read  them  carefully  .  .  . 

Live  strictly  in  accordance  with  your  apparent  earnings  in 
the  plant.  Do  not  spend  money  freely.  Such  action  would  at- 
tract attention  at  once  and  would  ruin  your  chance  of  making 
your  work  successful. 

When  assigned  to  inside  work  in  mill  or  factory,  get  a  room- 
ing place  the  same  as  any  other  worker  would  do.  Do  not  share 
it  with  others.  The  presence  of  an  outsider  would  interfere 
with  the  writing  of  your  confidential  reports  and  making  up  of 
expense  accounts. 

Should  it  ever  become  necessary  for  you  to  explain  to  the 
police  your  presence  in  any  town,  never  under  any  circum- 
stances admit  to  a  police  officer  your  connection  with  this  or- 
ganization. If  the  story  you  tell  them  does  not  satisfy  them, 
ask  to  see  the  police  chief  and  to  him  only  communicate  your 
identity  by  name  and  number  and  request  him  to  get  in  touch 
with  us.  When  he  communicates  with  us  you  will  be  dismissed 
at  once. 

In  writing  your  reports  see  that  you  are  not  observed  by 
fellow  workers,  the  landlady,  or  others.  When  leaving  the  room 


Senate  Probers  Examine  Striker  "Persuader" 

(Underwood  and  Underwood] 


"Six   little  Pinks   sitting  in  a  row":   i.  Shoemack;    2.  Dudley; 
3.  Pinkerton;  4.  Rossetter;  5.  Pugmire;  6.  Clark  (Acme) 


w 


// 


Raymond  J.  Burns  and  W.  Sherman  Burns,  heads  of  the  Burns 
agency  (Pictures,  Inc.] 


John  L.  Lewis,  interested  observer  at  the  hearings 


(Acme) 


THE  RATS'  CODE  75 

be  sure  that  you  leave  no  memoranda  lying  around.  Tear  them 
up  into  minute  parts  before  throwing  into  waste  basket,  or 
Jbetter  still,  use  the  toilet  hopper  or  burn  .  .  . 

FOURTH  INSTRUCTION  SHEET 

Both  your  representative  number  and  your  case  series  num- 
ber must  appear  on  every  report  and  expense  slip.  Never  use 
your  name,  or  this  organization,  or  the  client's  name.  When 
necessary  refer  to  us  as  "The  Service"  and  to  the  client  as 
"The  Client"  .  .  . 

In  mixing  with  your  fellow-workers  never  allow  yourself  to 
become  intoxicated  and  never  under  any  circumstances  per- 
mit yourself  to  mix  up  with  women.  Do  not  spend  excessively. 
Make  no  display  of  a  roll  of  bills  and  be  sure  when  you  send  in 
your  expense  account  that  you  make  mention  of  money  spent 
for  treats  of  fellow- workers  .  .  . 

In  giving  conversations  always  give  the  name  of  the  man  or 
his  number,  then  tell  what  you  said  to  him  and  what  he  says 
to  you.  In  all  these  conversations  try  to  talk  about  the  work  so 
as  to  find  out  how  each  man  feels  about  the  foreman  and  super- 
intendent or  anyone  else  in  authority.  You  want  to  find  out 
when  the  union  meets,  if  there  is  a  union.  Then  maybe  we 
will  have  you  arrange  to  attend  their  meetings  so  that  we  can 
see  just  what  is  going  on,  and  be  able  to  report  whether  any  of 
the  men  where  you  are  at  work  are  members  of  the  union.  Be 
sure  to  report  whether  any  agitation  is  going  on  in  town  any- 
where. 

Remember  we  are  unalterably  opposed  to  all  cliques,  radi- 
calists,  and  disturbing  elements  who  try  to  create  discontent- 
ment, suspicion,  and  unfriendliness  on  the  part  of  the  workers 
toward  the  employer.  The  minds  of  those  who  are  dissatisfied 
and  disgruntled  must  be  changed.  As  our  representative,  you 
must  find  out  first  of  all  who  are  the  dissatisfied  ones;  then 
cultivate  their  friendship  and  win  their  confidence.  You  will 
then  be  in  a  position  to  help  us  eliminate  discontentment. 


76  THE  LABOR  SPY  RACKET 

Be  forewarned  before  you  enroll  for  this  course  that  more  than 
diligent  habits  of  study  are  required  to  win  success  in  the  spy  busi- 
ness. You  must  be  daring.  You  must  be  prepared  to  throw  over- 
board your  moral  scruples.  You  must  be  hard.  You  must  learn  to 
lie  easily  and  often.  You  must  convince  yourself  that  practices 
which  most  people  regard  as  definitely  wrong,  are  definitely  right. 
You  must  be  slippery,  shrewd,  sharp,  sneaky.  You  must  not  hesi- 
tate to  beat  the  law  where  you  can  and  break  the  law  where  you 
must.  Success  came  to  Corporations  Auxiliary,  the  Pinkerton 
Agency,  the  Burns  Agency,  the  Sherman  Service,  Railway  Audit  & 
Inspection  and  the  other  top-notchers,  only  because  they  had 
learned  these  things. 

Let  us  look  at  the  record. 

In  1933,  the  Chrysler  Corporation  owed  to  Corporations  Auxiliary 
$61,627.48.  The  agency  submitted  its  bill  and  received  payment. 

In  1934,  the  Chrysler  Corporation  owed  to  Corporations  Auxili- 
ary $76,411.81.  The  agency  submitted  its  bill  and  received  pay- 
ment. 

In  1935,  the  Chrysler  Corporation  owed  to  Corporations  Auxili- 
ary $72,611.89.  But  now  a  curious  thing  happened.  The  agency  did 
not  submit  its  bill  and  receive  payment.  Instead,  it  submitted  four 
bills. 

Only  the  first,  for  $19,946.55,  was  from  Corporations  Auxiliary. 

The   second,  for  $19,447.09,  was  from  Smith  &  Weber. 

The  third,  for  $16,910.58,  was  from  the  Equitable  Auditing 
&  Publishing  Co. 

And  the  fourth,  for  $16,307.67,  was  from  the  International 
Auxiliary  Co. 

The  total  is  $72,61 1.89,  which  is  what  the  Chrysler  Corpo- 
ration owed  to  Corporations  Auxiliary  for  1935.  Then  why  all  the 
monkey  business?  Why  did  the  agency  in  1935  have  to  pull  out  of  a 
hat  a  Smith  and  Weber  letterhead,  and  an  Equitable  Audi  ting  letter- 
head? What  trick  was  being  performed  in  1935  that  wasn't  staged 
in  '33  or  '34? 

Watch  carefully. 


THE  RATS'  CODE  77 

SENATOR  LA  FOLLETTE.  Mr.  Smith,  are  you  familiar  with  the 
Securities  Act  .  .  .  ? 

MR.  SMITH.  I  do  not  think  so.  Senator. 

SENATOR  LA  FOLLETTE.  Are  you  familiar  with  the  regulations 
under  that  act  requiring  a  corporation  to  report  to  the  Securi- 
ties and  Exchange  Commission  all  payments  for  services  in 
excess  of  $20,000  made  by  it  to  any  firm,  person,  or  corpora- 
tion? 

MR.  SMITH.  It  seems  to  me  I  have  read  something  of  that  sort. 

SENATOR  LA  FOLLETTE.  Well,  now,  have  you  any  reason 
which  you  can  give  to  the  committee  as  to  why  these  bills  were 
split  up  in  1935  and  not  split  up  in  1934? 

MR.  SMITH.  None  that  I  can  give  you,  sir;  no,  sir. 

SENATOR  LA  FOLLETTE.  Do  you  think  that  the  Securities  and 
Exchange  Act  had  anything  to  do  with  it  ? 

MR.  SMITH.  I  might  imagine  some  such  thing,  but  I  have  no 
knowledge  of  it. 

Now  we  begin  to  understand.  Smith  hasn't  been  very  helpful  (he 
gets  a  tremendous  salary  for  knowing  almost  nothing,  doesn't  he?), 
but  Senator  La  Follette's  suspicions  give  us  a  clue.  The  Chrysler 
Corporation  wanted  to  evade  the  law  that  required  it  to  report  to 
the  S.E.C.  all  payments  it  made  above  $20,000;  the  Chrysler  Corpo- 
ration was  too  embarrassed  or  afraid  to  make  known  the  fact  that 
it  had  paid  $72,611.89  to  a  spy  agency.  It  asked  Corporations 
Auxiliary  to  help  it  beat  the  law,  and  the  agency  obliged  by  splitting 
its  bill  into  4  parts  no  one  of  which  was  above  $20 poo.  Under  this  ar- 
rangement Chrysler  could  pay  what  it  owed  without  reporting  it  — 
thus  beating  the  law. 

Shady  business,  of  course.  We  might  be  prepared  to  believe  that 
the  dick  agency  would  be  partner  to  such  a  deal,  but  what  about 
the  Chrysler  Corporation?  Would  that  great  firm  stoop  so  low? 
Perhaps  it's  all  a  mistake,  perhaps  our  suspicions  are  wrong. 

Alas,  no.  The  mighty  Chrysler  Corporation  and  Corporations 
Auxiliary  did  conspire  together  to  beat  the  law.  It  was,  in  fact, 


78  THE  LABOR  SPY  RACKET 

Chrysler's  idea  —  and  the  agency  did  not  hesitate  to  do  its  crooked 
part.  When  Dan  Ross  was  asked  why  Corporations  Auxiliary's 
method  of  billing  was  changed  in  1935,  he  gave  the  whole  show 
away: 

MR.  ROSS.  That  was  changed  at  the  request  of  one  of  the  offi- 
cers —  I  do  not  know  whom  —  on  account  of  the  Securities 
Act. 

SENATOR  LA  FOLLETTE.  It  was  changed  at  the  request  of  one 
of  the  officers  of  the  Chrysler  Corporation  ? 

MR.  ROSS.  Yes,  sir. 

SENATOR  LA  FOLLETTE.  It  originated  with  them,  you  are 
positive? 

MR.  ROSS.  Oh,  absolutely. 

SENATOR  LA  FOLLETTE.  Now,  obviously,  as  far  as  the  Corpo- 
rations Auxiliary  Co.  was  concerned,  you  were  willing  to  co- 
operate, after  you  had  received  this  request  from  the  Chrysler 
Corporation,  in  breaking  down  your  bills  for  identical  service, 
so  they  would  not  have  to  report  ? 

MR.  ROSS.  I  so  informed  Mr.  Weber,  and  .  .  .  the  sending 
of  those  bills  was  in  accordance  with  that  procedure. 

SENATOR  LA  FOLLETTE.  So  as  to  enable  the  Chrysler  Corpora- 
tion, according  to  your  testimony,  to  avoid  the  necessity  of  re- 
porting, as  required  by  law  ? 

MR.  ROSS.  I  suppose  so. 

What  Corporations  Auxiliary  could  do  for  Chrysler,  the  Pinker- 
tons  could  do  for  General  Motors.  Were  General  Motors  officials 
worried  lest  detailed  Pinkerton  bills  passing  through  the  accounting 
department  might  reveal  the  fact  that  spies  were  in  the  plant? 
Then  the  Pinks  could  relieve  them  of  their  fears.  Two  bills  could  be 
submitted:  one,  long  and  detailed  with  all  the  dope  in  it  —  for  the 
corporation  officials,  who  would  destroy  it  after  reading;  the  other, 
short  and  meaningless,  with  no  tell-tale  information  on  it  —  for  the 
accountants  and  the  files.  What  troublesome  information,  for  ex- 


THE  RATS'  CODE  79 

ample,  could  the  accountants  glean  from  the  following  harmless- 
looking  bill? 

G.  O.  9  19332 
April  30,  1935 
General  Motors  Corporation,  Dr. 

In  Account  with  J.  S.  Smith,  154  Nassau  Street,  New  York, 
N.  Y.  : 

For  Professional  Services $2,780. 68 

Travelling  Expenses 865 . 54 

Telephone  and  Telegraph 946 . 42 

Publications 157.02 

$4,749.66 
Approved  for  Payment.  Return  to  Audit  Dept.  For  Final 

Audit. 

Approved  for  Final  Audit  —  R.  A.  M. 
PAID  OCT.  4,  1935;  Ck.  No.  C  30298 
265  —  R    O.K.    J.  Eaton    27a 
OK    NMP    OK    H.  W.  A. 

Could  you  tell  from  this  bill  that  the  $4,749.66  went  in  reality  to 
the  Pinkerton  Agency  for  its  industrial  service  ?  Not  evident  in  any 
way,  is  it?  But  wasn't  it  just  as  meaningless  to  General  Motors 
officials  as  it  might  be  to  the  accountants?  (Or  to  snooping  govern- 
ment officials?)  Oh,  no.  They  understood  it  because,  you  remember, 
this  bill  was  accompanied  by  a  detailed  one  which  explained  Mr. 
Smith's  "professional  services,"  etc. 

Do  you  find  it  utterly  fantastic  that  General  Motors,  one  of  the 
greatest  corporations  in  the  world,  should  have  asked  the  Pinks  to 
bill  them  in  this  sneaking  fashion  ?  And  that  the  Pinkerton  Agency 
(established  1850),  which  prides  itself  that  it  is  superior  to  other 
agencies,  should  have  complied  with  General  Motors'  request? 
Then  look  at  the  sworn  testimony: 

MR.  HALE,  [former  labor-relations  director]  ...  I  worked  it 
out  with  Mr.  McMullen  that  we  didn't  think  it  desirable  to 


8o  THE  LABOR  SPY  RACKET 

have  a  lot  of  this  detailed  information  going  through  our  ac- 
counting department  files. 

SENATOR  LA  FOLLETTE.  Why? 

MR.  HALE.  For  the  reason  it  was  the  type  of  information  we 
just  didn't  think  was  good  business  to  have  scattered  around 
through  the  department. 

SENATOR  LA  FOLLETTE.  Why? 

MR.  HALE.  Well — (Laughter). 

SENATOR  LA  FOLLETTE.  As  a  matter  of  fact,  Mr.  Hale,  you 
did  not  want  it  to  get  back  to  the  employees  that  you  were 
getting  this  kind  of  information,  if  you  will  pardon  me  for 
asking  a  leading  question  to  save  time. 

MR.  HALE.  I  don't  know  that  that  was  entirely  the  reason, 
sir.  A  good  many  things  are  not  understood,  Senator,  by 
people  who  do  not  understand  the  whole  picture. 

SENATOR  LA  FOLLETTE.  I  will  grant  you  that.  But,  for  ex- 
ample, Mr.  Hale,  it  is  not  an  accounting  practice  of  this  effi- 
cient corporation,  is  it,  to  digest  or  think  up  strange  headings 
for  bills  for  equipment,  and  parts  and  materials,  is  it?  The 
Steel  Corporation  does  not  bill  you  for  wooden  ware,  does  it? 
(Laughter) 

MR.  HALE.  No,  sir.  .      .      . 

SENATOR  LA  FOLLETTE.  .  .  .  You  put  into  effect,  or  had  an 
arrangement  with  Pinkerton's  whereby  those  detailed  bills, 
which  you  thought  inadvisable  to  have  going  through  the 
accounting  department,  came  through  in  the  form  of  a  break- 
down into  four  or  five  different  heads  ? 

MR.  HALE.  Yes,  sir. 

SENATOR  LA  FOLLETTE.  And  then  later  on  you  began  to  get 
bills  from  clerks  in  Pinkerton's,  like  J.  S.  Smith,  for  profes- 
sional services  during  i  month,  $2,850.  Now,  I  am  asking  you 
if  those  were  typical  of  the  bills  you  received  ?  ... 

MR.  HALE.  We  received  two  bills.  We  received  a  detailed 
bill  .  .  .  and  a  summary  bill  for  purposes  of  going  through 


THE  RATS'  CODE  81 

our  accounting  department.  On  the  basis  of  the  detailed  bill  it 
gave  me  a  chance  to  audit  the  over-all  bill. 

SENATOR  LA  FOLLETTE.  What  did  you  do  with  the  detailed  bill  ? 

MR.  HALE.  Destroyed  it,  sir. 

SENATOR  LA  FOLLETTE.  The  bills  that  were  left  in  the  records 
of  the  General  Motors'  offices  were  really  not  reflectory  of  the 
kind  of  service  you  were  obtaining,  were  they  ? 

MR.  HALE.  I  would  say  they  were;  yes,  sir;  very  definitely. 

SENATOR  LA  FOLLETTE.  Would  you  say  a  bill,  from  J.  S. 
Smith,  who  Mr.  Rossetter  testified  was  a  clerk  in  his  office,  for 
professional  services,  amounting  to,  if  my  recollection  serves 
me  correctly,  in  I  month  to  $2,850,  and  traveling  and  tele- 
phone expenses  around  $900,  revealed  the  type  of  service  that 
Pinkerton  was  rendering  to  your  organization? 

MR.  HALE.  Those  bills  were  subsequent  to  my  time,  and  I 
will  ask  Mr.  Anderson  to  answer  that  question. 

SENATOR  LA  FOLLETTE.  What  would  you  say,  Mr.  Anderson? 

MR.  ANDERSON.  No,  Sir. 

Of  course  it's  unfair  to  put  more  than  a  little  of  the  blame  on  the 
agencies.  In  both  these  cases  the  shady  idea  came  originally  from 
the  clients,  Chrysler  and  General  Motors.  All  that  the  agencies  did 
was  to  fall  in  with  the  scheme  without  any  quibbling.  They  obeyed 
their  master's  voice.  The  companies  that  paid  the  bills  were  calling 
the  tune. 

They  called  a  good  many  tunes  —  some  of  them  definitely  off  key 
to  anybody  not  made  tone-deaf  by  contact  with  dick  agencies. 
For  example,  both  Chrysler  and  General  Motors  ordered  their  spy 
service  extended  to  plants  other  than  their  own!  Chrysler  bought 
supplies  and  equipment  from  firms  not  subsidiary  to  the  Chrysler 
Corporation.  Mr.  Allen  P.  Hascall,  who  was  in  charge  of  the  pur- 
chase of  materials,  testified  that  he  felt  it  was  his  job  to  keep  a 
steady  flow  of  materials  coming  into  the  plant,  so  he  asked  Corpora- 
tions Auxiliary  to  make  "surveys"  of  the  vendor  plants.  Corpora- 


82  THE  LABOR  SPY  RACKET 

tions  Auxiliary  obliged.  It  made  surveys,  too,  of  plants  not  yet 
selling  to  Chrysler.  It  even  made  surveys  of  vendors  to  competitors 
of  Chrysler!  And  in  no  case  were  the  officials  of  these  plants  advised 
that  Chrysler  was  spying  on  them  through  Corporations  Auxiliary. 
Pretty  business! 

SENATOR  LA  FOLLETTE.  Is  it  your  policy  to  ask  for  reports  on 
all  vendors  who  supply  an  appreciable  amount  of  materials 
necessary  for  the  complete  operation  of  the  Chrysler  plants? 

MR.  HASCALL.  YeS,  sir. 

SENATOR  LA  FOLLETTE.  Is  it  your  practice  to  secure  such  a 
report  before  you  purchase  any  material  from  a  new  source  of 
supply  ? 

MR.  HASCALL.  I  frequently  do  that. 

SENATOR  LA  FOLLETTE.  When  you  have  a  vendors'  survey 
made  ...  do  you  advise  any  of  the  officers  of  that  company 
that  you  are  having  such  a  survey  made  ? 

MR.  HASCALL.  No  Sir. 

SENATOR  LA  FOLLETTE.  Is  it  not  often  true  that  your  competi- 
tors use  some  of  these  vendors  ? 
MR.  HASCALL.  I  would  say  so. 

Does  Chrysler's  practice  of  injecting  their  paid  spies  into  the 
other  fellow's  plants  seem  just  a  trifle  —  er  —  unusual  ?  Well,  it 
didn't  seem  so  to  General  Motors  —  their  only  complaint  was  that 
their  own  spies,  the  Pinks,  didn't  get  them  enough  information  on 
their  vendors'  business: 

SENATOR  LA  FOLLETTE.  Now,  Mr.  Hale;  were  you  interested 
in  information  concerning  labor  conditions  and  organizational 
activities  in  the  equipment  and  suppliers  of  General  Motors? 

MR.  HALE.  I  was  interested  if  there  was  threatened  trouble. 

SENATOR  LA  FOLLETTE.  Did  Pinkertons  furnish  you  such 
information  ? 


THE  RATS'  CODE  83 

MR.  HALE.  Not  as  completely  as  I  wished  they  had. 
SENATOR  LA  FOLLETTE.  They  did  furnish  you  some? 
MR.  HALE.  Yes,  sir. 

If  you  think  all  this  spying  in  their  own  plants  and  in  the  plants 
of  their  vendors  is  becoming  a  hopeless  tangle,  here's  a  word  of 
warning —  "You  ain't  seen  no  thin'  yet."  General  Motors  put  the 
Pinkertons  on  still  another  tack  —  they  had  to  spy  on  the  Corpora- 
tions Auxiliary!  T^he  spies  for  General  Motors  were  asked  to  spy  on 
the  spies  for  Chrysler. 

Senator  La  Follette  hands  a  Pinkerton  ledger  sheet  to  Edward  S. 
Clark,  manager  of  the  Pinkerton  Cleveland  office: 

SENATOR  LA  FOLLETTE.  Mr.  Clark,  do  you  know  what  C.A.C. 
stands  for?  There  are  n  entries  for  C.A.C.  What  is  that? 

MR.  CLARK.  I  think  that  is  the  Corporations  Auxiliary  Co. 

SENATOR  LA  FOLLETTE.  What  were  you  doing  on  that  job? 

MR.  CLARK.  Well,  we  were  trying  to  find  out  whether  or 
not  information  they  were  securing  was  being  passed  to  a 
competitor. 

SENATOR  LA  FOLLETTE.  Now,  why  did  you  concentrate  on 
Corporations  Auxiliary? 

MR.  CLARK.  Well,  it  was  my  understanding  that  those  folks 
were  doing  a  good  deal  of  work  for  this  particular  competitor. 

SENATOR  LA  FOLLETTE.  Which  One  ? 

MR.  CLARK.  Chrysler   .  .  . 

How  the  spy  system  grows!  What  sorry  practices  our  business 
leaders  feel  themselves  forced  to  indulge  in,  because  of  the  pressure 
of  competitive  capitalist  industry. 

But  we've  not  reached  the  end  even  yet.  Not  only  do  the  agencies 
spy  on  workers  and  vendors,  and  on  the  operatives  of  other  agencies, 
but  they  even  spy  on  their  own  spies !  They  can't  even  trust  them- 
selves. Robert  W.  Coates,  a  Burns  operative,  admitted  this.  He 
was  being  questioned  about  a  report  he  had  written  about  a  union 


84  THE  LABOR  SPY  RACKET 

meeting  of  bakery  workers  which  he  had  attended.  (See  Appendix 
C.) 

SENATOR  LA  FOLLETTE.  As  a  matter  of  fact  did  you  not  take 
part  in  this  meeting  and  make  these  suggestions  for  the  pur- 
pose of  establishing  confidence  in  the  minds  of  the  other  people 
there  concerning  yourself  and  your  bona  fide  connection  as  a 
worker  for  a  bakery? 

MR.  COATES.  Well,  it  is  certain  I  didn't  go  in  there  and  tell 
them  I  was  a  Burns  detective.  It  is  quite  obvious  from  my 
reports  on  it. 

SENATOR  LA  FOLLETTE.  You  even  went  so  far  as  to  express 
your  fear  there  might  be  some  stool-pigeons  present. 

MR.  COATES.  Why,  I  was  satisfied  there  was. 

SENATOR  LA  FOLLETTE.  How  could  you  tell?  (Laughter) 

MR.  COATES.  Senator,  in  my  experience  for  the  past  twenty 
some  years  I  have  found  out  there  is  stools  in  every  union 
organization. 

SENATOR  LA  FOLLETTE.  You  did  not  think  there  were  any 
other  Burns  stools  there,  did  you? 

MR.  COATES.  I  didn't  know.  There  might  have  been  some- 
body there  checking  on  me  for  all  I  knew.  (Laughter) 

SENATOR  THOMAS.  Is  that  a  common  practice? 

MR.  COATES.  For  what? 

SENATOR  THOMAS.  For  Burns  men  to  check  on  Burns  men. 

MR.  COATES.  Well,  I  have  known  them  to. 

The  Burns  agency  had  the  "checking"  habit.  For  a  considera- 
tion, they  would  check  anything  and  everybody.  No,  that's  not 
quite  true  —  Mr.  W.  Sherman  Burns,  secretary-treasurer  of  the 
William  J.  Burns  International  Detective  Agency,  testified  that 
they  "never  shadowed  any  grand  juries  at  any  time."  Trial  juries 
—  well,  they  were  different,  but  grand  juries,  never. 

SENATOR  LA  FOLLETTE.  Do  you  recall  the  activities  of  your 
agency  in  connection  with  the  prosecution  of  Harry  Sinclair 


THE  RATS'  CODE  85 

for  refusing  to  answer  questions  before  a  Senate  committee, 
engaged  in  investigating  the  Teapot  Dome  Oil  scandals? 

MR.  W.  SHERMAN  BURNS.  YeS,  Sir. 

SENATOR  LA  FOLLETTE.  Did  not  operatives  of  your  agency 
shadow  members  of  a  Federal  grand  jury  which  indicted 
Sinclair? 

MR.  w.  SHERMAN  BURNS.  Not  in  that  case,  or  in  no  case. 
We  never  shadowed  any  grand  juries  at  any  time. 

SENATOR  LA  FOLLETTE.  Did  you  shadow  the  trial  jurors  in 
that  case? 

MR.  w.  SHERMAN  BURNS.  In  the  Sinclair  case;  yes. 

SENATOR  LA  FOLLETTE.  Pardon  me  for  getting  the  question 
first  about  the  grand  jury.  Is  there  any  difference  between 
shadowing  grand  jury  members  and  trial  jury  members  in 
your  judgment? 

MR.   W.   SHERMAN  BURNS.   I   think  SO. 

SENATOR  LA  FOLLETTE.  In  the  field  of  morals  or  ethics? 

MR.  w.  SHERMAN  BURNS.  Yes;  I  think  so. 

SENATOR  LA  FOLLETTE.  Do  you  recall  what  the  Supreme 
Court  of  the  United  States  had  to  say  about  private  detectives 
apropos  of  your  activities  in  the  Sinclair  case? 

MR.  w.  SHERMAN  BURNS.  No;  I  don't  recall. 

SENATOR  LA  FOLLETTE.  Just  to  refresh  your  recollection  I 
will  read  in  part  from  the  decision  of  the  Supreme  Court: 

"The  most  exemplary  resent  having  their  footsteps  dogged 
by  private  detectives.  All  know  that  men  who  accept  such 
employment  commonly  lack  fine  scruples,  and  only  wilfully 
misrepresent  innocent  conduct  and  manufacture  charges." 

Does  that  refresh  your  recollection? 

MR.  W.   SHERMAN   BURNS.  YeS,  sir. 

It  might  be  argued  that  the  Supreme  Court  was  a  little  too  hard 
on  the  dicks  when  it  said  they  "commonly  lack  fine  scruples." 
Actually  the  scruples  of  the  Burns  outfit  were  so  very,  very  fine  that 


86  THE  LABOR  SPY  RACKET 

they  could  detect  a  difference  in  ethics  between  shadowing  a  grand 
jury  and  a  trial  jury. 

One  wonders  what  the  Supreme  Court  would  think  of  the  latest 
wrinkle  in  shadowing.  In  Toledo,  in  1935,  there  was  a  strike  at  the 
Chevrolet  plant.  Mr.  Edward  McGrady,  the  Assistant  Secretary  of 
Labor,  was  sent  in  by  the  Government  to  act  as  conciliator,  ^he 
Pinkertons,  acting  for  General  Motors,  shadowed  Mr.  McGrady,  a 
government  officer.  It  no  longer  surprises  us  to  learn  that  spies  trail 
John  L.  Lewis,  Adolph  Germer,  Richard  Frankensteen,  and  other 
leaders  of  labor;  but  this  shadowing  of  a  government  officer  while  he 
is  in  the  middle  of  his  negotiations  toward  settlement  of  a  strike,  is  a 
new  angle.  Yet  the  record  leaves  no  room  for  doubt: 

MR.  MARTIN.  [Pinkerton  operative]  .  .  .  Mr.  McGrady  was 
pointed  out  to  me  by  Mr.  Brunswick.  [Bronson,  Burnside,  now 
Brunswick.] 

SENATOR  THOMAS.  Mr.  Brunswick  identified  Mr.  McGrady? 
MR.  MARTIN.  Mr.  Brunswick  identified  Mr.  McGrady. 
SENATOR  THOMAS.  And  told  you  to  follow  McGrady? 
MR.  MARTIN.  And  told  me  to  follow  McGrady. 
SENATOR  THOMAS.  For  what  purpose? 

MR.  MARTIN.  When  he  came  out  to  follow  him,  see  where  he 
went  and  whom  he  talked  to. 

SENATOR  THOMAS.  Then  you  did  what? 

MR.  MARTIN.  Then  I  was  told  by  Mr.  Brunswick  to  go  to  a 
room  downstairs,  that  Mr.  Brunswick  had  made  arrangements 
with  the  manager  of  the  hotel.  This  room  was  right  next  door 
to  the  one  supposedly  occupied  by  Mr.  McGrady. 

SENATOR  THOMAS.  That  is,  Mr.  Brunswick  knew  the  hotel  in 
which  McGrady  lived  ? 

MR.  MARTIN.  YeS. 

SENATOR  THOMAS.  And  he  made  arrangements  for  you  to 
have  the  room  next  door? 

MR.  MARTIN.  He  made  arrangements  for  us  to  have  the 
room  next  door. 


THE  RATS'  CODE  87 

SENATOR  THOMAS.  So  that  you  could  shadow  him? 
MR.  MARTIN.  So  we  could  sit  in  there  and  try  to  hear  what 
they  were  talking  about. 

SENATOR  THOMAS.  In  the  next  room? 

MR.  MARTIN.  YeS,  Sir. 

SENATOR  THOMAS.  What  hotel  was  that? 

MR.  MARTIN.  The  Secor  Hotel. 

SENATOR  THOMAS.  Did  you  go  to  the  room? 

MR.  MARTIN.  We  went  to  the  room  but  did  not  hear  any- 
thing. 

SENATOR  THOMAS.  Well,  you  mean  Mr.  McGrady  did  not 
come  into  the  room  ? 

MR.  MARTIN.  I  could  not  tell  who  was  in  the  room.  There  was 
someone  in  there.  Everything  was  mumbled;  I  could  not  even 
say  Mr.  McGrady  was  in  there.  He  was  supposed  to  be  in 
there  with  these  other  men. 

SENATOR  THOMAS.  They  talked  in  low  voices? 

MR.  MARTIN.  Well,  they  talked  loud  enough,  but  you  could 
not  understand  anything. 

SENATOR  THOMAS.  They  talked  in  a  foreign  language? 

MR.   MARTIN.  No,  sir. 

SENATOR  THOMAS.  How  did  you  try  to  understand  it?  Did 
you  get  near  the  transom  ? 

MR.  MARTIN.  All  we  had  to  do  was  to  get  up  near  the  wall. 
That  is  all  I  could  do. 

SENATOR  THOMAS.  Did  you  try  that  again? 

MR.  MARTIN.  Well,  on  two  or  three  occasions  like  that, 
always  at  night. 

SENATOR  THOMAS.  Always  at  night? 

MR.  MARTIN.  Always  at  night. 

SENATOR  THOMAS.  When  Mr.  McGrady  came  home? 

MR.   MARTIN.  YeS. 

Martin's  testimony  was  corroborated  when  Brunswick-Burnside 
was  on  the  stand. 


J  THE  LABOR  SPY  RACKET 

SENATOR  THOMAS.  Mr.  McGrady's  chief  job  was  to  try  to 
settle  strikes,  was  it  not? 

MR.  BURNSIDE.  YeS. 

SENATOR  THOMAS.  Why  would  you  want  to  shadow  him? 

MR.  BURNSIDE.  I  presume,  to  see  what  his  contacts  were.  I 
had  those  instructions  from  Mr.  Clark,  as  I  remember,  to 
place  him  under  surveillance.  I  presume  it  was  to  see  who  he 
was  contacting,  where  he  went. 

SENATOR  THOMAS.  Could  it  possibly  have  been  because  you 
did  not  want  to  see  the  strike  settled? 

MR.  BURNSIDE.  No,  sir. 

SENATOR  THOMAS.  That  you  wanted  to  sell  more  of  your 
wares  ? 

MR.  BURNSIDE.  No,  no. 

SENATOR  THOMAS.  You  know  that  there  has  been  testimony 
given  here  that  that  has  been  done,  do  you  not? 

MR.  BURNSIDE.  So  I  understand. 

SENATOR  THOMAS.  Did  you  know  that  Mr.  McGrady  was 
Assistant  Secretary  of  Labor  at  the  time  you  shadowed 
him? 

MR.  BURNSIDE.  I  do  not  believe  I  knew  his  exact  title,  Sena- 
tor. I  knew  he  was  connected  with  the  Labor  Department;  he 
was  there  as  conciliator  or  mediator,  or  something  of  that 
kind. 

SENATOR  THOMAS.  Would  it  be  commonplace  for  you  to 
accept  a  task  like  that,  shadowing  Government  men  ? 

MR.  BURNSIDE.  Well,  in  shadowing  anyone,  Senator,  that  a 
client,  whom  we  considered  responsible,  had  reason  to  take 
interest  in,  as  to  their  movements  and  so  on,  if  it  appeared 
there  was  nothing  unethical  or  nothing  illogical  about  it,  I 
presume  we  would  take  the  job,  whether  they  were  Govern- 
ment officials  or  who  they  were. 

SENATOR  THOMAS.  Do  you  think  any  of  your  employees 
had  an  idea  which  way  Mr.  McGrady's  opinions  would  tend, 


THE  RATS'  CODE  2 

coward  the  right  or  toward  the  left,  toward  radicalism  or 
toward  conservatism? 

MR.  BURNSIDE.  Mr.  McGrady,  as  far  as  I  know,  always  had 
a  very  fair  reputation,  a  reputation  as  being  fair,  not  being 
inclined  toward  one  side  or  the  other.  That  is  why  he  has  been 
so  successful  in  settling  a  great  many  of  these  difficulties. 

SENATOR  THOMAS.  If  Mr.  McGrady  is  such  a  fine  man, 
what  about  the  ethics  of  eavesdropping,  putting  a  couple  of 
men  next  to  his  room  to  listen? 

MR.  BURNSIDE.  To  try  to,  as  Mr.  Martin  said,  hear  what  was 
going  on  in  there,  to  see  what  progress  was  being  made.  If  it 
were  for  the  holding  company,  [General  Motors],  for  instance, 
they  might  be  interested  in  knowing  how  soon  the  thing  was 
coming  to  a  settlement,  so  that  they  could  make  their  plans 
accordingly  .  .  . 

SENATOR  THOMAS.  In  the  Chevrolet  strike  in  Toledo  in  1935, 
what  information  could  be  more  important  to  General  Motors 
than  to  know  what  concessions  the  union  would  make,  Mr. 
Burnside? 

MR.  BURNSIDE.  That  would  be  important,  yes. 

SENATOR  THOMAS.  In  other  words,  if  you  had  gotten  some  in- 
formation that  you  could  have  sent  on  to  your  employers  in  the 
shadowing  of  Mr.  McGrady,  it  would  have  been  a  trump  card 
in  your  espionage  work,  would  it  not? 

MR.  BURNSIDE.  They  might  consider  it  so. 

SENATOR  THOMAS.  It  would  very  largely  interfere  with  bring- 
ing about  a  settlement? 

MR.  BURNSIDE.  It  might  have  an  effect. 

SENATOR  THOMAS.  Well,  Mr.  Pinkerton,  do  you  think  so  ? 

MR.  PINKERTON.  I  do   •   •   . 

SENATOR  THOMAS.  .  .  .  What  about  interfering  with  the 
bringing  about  of  peace?  That  is  the  aim  of  the  conciliator.  He 


9o  THE  LABOR  SPY  RACKET 

represents  the  public.  He  does  not  represent  the  strikers  and  he 
does  not  represent  the  concerns  at  all,  but  he  represents  the 
general  public.  Now,  in  that  position  he  must  have  the  abso- 
lute trust  of  both  sides  or  else  all  his  work  is  ineffective.  The 
minute  you  spy  on  him  you  cannot  do  anything  else  but  break 
down  that  trust. 

MR.  PINKERTON.  If  the  fact  is  known  it  would  have  a  bearing 
on  it. 

SENATOR  THOMAS.  To  give  an  actual  illustration,  any  evi- 
dence the  union  committee  reveals  of  what  it  might  concede, 
if  through  that,  your  General  Motors,  that  is,  your  employer, 
learns  that,  it  would  be  extremely  valuable  to  General  Motors; 
would  it  not? 

MR.  BURNSIDE.  I  presume  it  would. 

SENATOR  THOMAS.  For  example,  put  it  in  simple  arithmetic: 
If  the  strikers  are  striking  for  a  raise  of  50  cents  a  day  in  the 
case,  and  the  conciliator  knows  that  they  will  accept  25  cents 
a  day  but  the  firm  does  not  know  it  as  yet  but  you  find  out  that 
they  would,  would  it  not  be  the  stupidest  firm  on  earth  that 
would  not  hold  out  for  a  saving  of  25  cents  ? 

MR.  BURNSIDE.  It  would  seem  to  me  that  if  the  conciliator 
knew  that  the  25  cents  was  a  common  meeting  ground,  that 
that  would  be  the  point  to  fix  the  settlement,  anyway. 

SENATOR  THOMAS.  Yes;  but  you  have  got  that  and  you  tell  it 
to  the  persons  on  one  side  and  they  have  got  that  information. 
Do  you  not  see  that  you  have  given  them  a  weapon  whereby 
they  will  hold  out  and  hold  out  until  they  [the  strikers]  break? 

MR.  BURNSIDE.  I  can  conceive  of  that;  yes. 

In  the  McGrady  case  the  Pinks  admitted  shadowing  a  govern- 
ment official.  Still,  in  all  fairness  to  them,  it  must  be  admitted  that 
other  evidence  was  introduced  showing  that  they  were  prepared  at 
any  time  to  work  not  on  but  for  government  officials,  if  they  were 
given  the  opportunity.  This  evidence  was  extremely  interesting  be- 


THE  RATS*  CODE  91 

cause  to  do  so  would  have  been  a  violation  of  a  law  passed  on  March 
3,  1893.  The  law  was  a  direct  result  of  the  major  part  played  by  the 
Pinkerton  Agency  in  the  bloody  Homestead  Strike.  Congress,  at 
that  time,  was  so  outraged  by  this  employment  of  private  detec- 
tives which  resulted  in  ten  deaths,  that  it  passed  the  law  prohibiting 
the  Federal  Government  or  any  of  its  departments  from  ever  em- 
ploying detective  agencies  —  and  it  mentioned  the  Pinkerton 
Agency  specifically. 

But  a  law  passed  by  the  Congress  of  the  United  States  was  a 
mere  detail  to  be  lightly  brushed  aside  when  the  Pinks  were  after 
business.  Detective  agencies  are  on  to  every  trick  of  the  game  when 
it  comes  to  beating  the  law,  and  the  Pinkertons  are  no  exception. 
Order  106  of  the  Pinkerton  Order  Book  is  a  gem  in  that  it  first 
quotes  the  law  prohibiting  the  employment  of  the  agency,  and  then 
goes  on  deliberately  to  show  how  that  law  can  be  evaded! 

SENATOR  LA  FOLLETTE.  I  will  read  certain  portions  of  ... 
page  4  of  Order  106  taken  from  the  Pinkerton  Order 
Book. 

"  13.  United  States  Government. 

(a)  Act  of  March  3,  1893,  Vol.  #2.  p.  121,  Supp.  R.S.U.S. 
provides  'That  hereafter  no  employee  of  the  Pinkerton's  De- 
tective Agency,  or  similar  Agency,  shall  be  employed  in  any 
Government  Service,  or  by  an  officer  of  the  District  of  Co- 
lumbia .  .  .' 

(b)  Under  this  law  the  United  States  Government  can  re- 
fuse to  pay  Agency's  bills. 

(c)  When  solicited  by  United  States  officials,  their  atten- 
tion should  be  called  to  this  law  and,  if  responsible,  their  per- 
sonal guarantee  for  payment  of  our  account  secured,  other- 
wise from  some  other  responsible  person. 

(d)  The  law  has  been  overcome  by  Government  officials 
by  our  rendering  to  them  two  bills.  One  in  the  usual  detail,  the 
other  on  plain  paper  for  the  total  amount  for  them  to  use  as  a 
voucher,  as  exampled: 


92  THE  LABOR  SPY  RACKET 

John  Smith  (the  official) 
To  Peter  Doe  (An  agency  clerk's  name) 
For  services  and  expenses  —  $375.25 
(e)  Reports  should  be  rendered  on  plain  paper,  operative 
designated  by  number  and  not  signed,  and  with  no  mention  of 
the  agency." 

Now,  it  is  clearly  the  intent  of  that  order,  is  it  not,  Mr.  Pink- 
erton,  to  indicate  methods  of  evading  the  law  ? 

MR.  PINKERTON.  YeS. 

A  detailed  bill  and  a  fake  bill  —  the  same  technique  that  was  in 
use  for  General  Motors.  Fool  the  workers  in  one  case,  fool  the  law 
in  the  other.  (Note  that  there  must  be  two  sides  to  this  illegal  bar- 
gain —  government  officials  on  the  one,  Pinkertons  on  the  other.) 

The  Social  Security  Act  which  required  that  the  names  of  em- 
ployees be  filed  with  the  government  authorities  gave  the  agencies 
a  real  headache.  Because  secrecy  is  so  essential  to  their  business 
they  felt  that  they  must  not  reveal  the  names  of  their  operatives. 
But  the  law  said  they  must.  What  to  do  about  it? 

There's  always  a  way  out  for  these  slippery  boys.  They  solved  the 
problem  by  removing  the  operatives  from  their  own  payroll  and 
having  them  appear  only  on  the  payroll  of  the  corporations  in 
which  they  were  operating.  Brilliant  stroke,  wasn't  it?  John  Mo- 
hacsi,  C.A.C.  operative,  tells  how  it  worked  in  his  case:  "In  and 
about  January  4,  1937, 1  was  called  into  the  office  by  Stewart  and  I 
filled  out  a  card  resigning  my  position  with  the  Int.  Aux.  Corp.  I 
was  then  instructed  to  sign  a  new  contract  of  employment  for  the 
handing  in  of  reports  to  the  Worthington  Pump  Company.  I  was  to 
receive  the  same  amount  of  pay  but  it  would  come  directly  from  the 
Worthington  Pump  Company.  All  my  reports  and  activities  were 
to  continue  in  the  same  way,  being  supervised  by  Stewart  of  the 
Int.  Aux.  Corp.  and  there  was  no  change  in  the  manner  or  place  to 
which  I  was  to  send  my  reports." 

When  Smith,  C.A.C.  president,  was  asked  why  his  corporation 
had  inaugurated  this  new  practice  this  was  his  answer: 


THE  RATS'  CODE  93 

MR.  SMITH.  Oh,  it  is  a  question  of  the  Social  Security  Act,  I 
imagine. 

SENATOR  LA  FOLLETTE.  To  relieve  your  corporation  of  the 
responsibility  of  reporting  under  the  Social  Security  Act? 

MR.  SMITH.  Yes. 

State  and  city  laws  requiring  registration  of  operatives  were  a 
nuisance.  There  were,  of  course,  ways  of  getting  around  these  laws, 
and  in  some  states,  some  agencies  pulled  fast  ones  like  that  of 
C.A.C.  on  the  Social  Security  Act.  But  occasionally  the  boys 
slipped  —  or  else  they  just  didn't  bother  to  obey  the  law.  The  evi- 
dence shows  that  Railway  Audit  violated  the  Wisconsin  law  re- 
quiring registration  of  operatives;  that  Corporations  Auxiliary 
"complied"  with  the  Wisconsin  law  by  a  trick  —  but  paid  no  at- 
tention to  a  similar  law  in  the  state  of  Indiana;  that  the  Pinkerton 
Agency  did  not  register  at  least  one  secret  operative  in  Atlanta, 
where  there  was  an  ordinance  requiring  such  registration. 

In  its  returns  to  the  men  at  the  top,  and  in  its  hooking  aspect,  the 
spy  industry  has  been  likened  to  the  business  of  organized  prostitu- 
tion. In  its  method  of  getting  and  keeping  business  the  spy  industry 
is  like  the  armament  industry. 

In  the  United  States  one  unique  offshoot  of  the  business  of  mak- 
ing armaments  for  warring  nations  is  the  business  of  making  muni- 
tions, tear  gas,  and  machine  guns  for  industrialists  for  "plant  pro- 
tection" in  case  of  strikes.  This  offshoot  of  the  armament  industry, 
like  its  parent,  thrives  on  trouble.  Business  is  best  when  the  cus- 
tomer is  scared.  Orders  roll  in  when  the  customer's  security  is 
threatened.  Federal  Laboratories,  Inc.,  the  Lake  Erie  Chemical 
Co.,  and  the  Manville  Manufacturing  Co.,  the  three  principal 
munitions  makers  for  industrial  use  in  the  United  States,  are  ever 
on  the  lookout  for  what  they  call  "trouble"  i.e.,  strikes. 

So  with  the  spy  agencies.  They  too  thrive  on  "trouble"  —  defined 
by  them  as  "any  attempt  by  workers  to  organize."  Let  a  union 
organizer  show  his  head  in  any  locality  and  the  salesmen  for  the  spy 
agencies  turn  up  at  once  soliciting  business.  The  similarity  is  plainly 


94  THE  LABOR  SPY  RACKET 

illustrated  in  a  comparison  of  letters  from  the  munitions  and  spy 
agency  salesmen.  Mr.  Herrick  Foote,  munitions  salesman  of  New 
Haven,  Conn.,  writes  to  Mr.  A.  S.  Ailes,  vice  president  of  the  Lake 
Erie  Chemical  Co.  on  April  5th,  1935.  "I  am  doing  a  lot  of  mis- 
sionary work  in  anticipation  of  a  strike  this  spring,  and  I'm  in  a 
position  to  send  in  some  good  orders,  if  it  will  only  mature.  Wish  a 
hell  of  a  strike  would  get  under  way."  Two  months  later,  he  writes 
again  as  the  situation  gets  hotter: 

NEW  HAVEN,  CONN.,  June  15,  1935. 
A.  S.  AILES, 

Lake  Erie  Chemical  Company,  Cleveland,  Ohio. 
Dear  Mr.  Ailes :  I  beg  to  advise  you  that  at  a  meeting  of  the 
national  officials  of  the  United  Textile  Workers  Union  of  Amer- 
ica held  at  Providence,  R.  I.,  yesterday  demanded  a  20%  in- 
crease in  wages  for  the  workers  in  the  cotton  and  woolen  mills 
and  if  this  20%  increase  was  not  given  within  the  next  ten 
days,  a  general  strike  throughout  the  country  would  be  called. 
This  looks  like  some  business  and  if  this  strike  matures  it  will 
be  a  bad  one.  Hope  you  have  something  definite  as  to  the  new 
long  range  gun,  as  we  will  be  in  a  bad  way,  if  this  strike  gets 
under  way  and  we  have  no  long  range  guns  .  .  .  I  hope  that 
this  strike  develops  and  matures  and  that  it  will  be  a  damn  bad  one3 
we  need  the  money  .  .  .  Everyone  wants  to  be  up  on  their  toer> 
watching  this  situation  and  work  fast  .  .  . 
Very  truly  yours, 

HERRICK  FOOTE. 

Just  as  Mr.  Foote  of  the  munitions  industry  saw  business  coming 
his  way  as  a  strike  situation  developed  and  matured,  so  Operative 
423  (W.  H.  Gray,  of  Railway  Audit)  looked  for  business  in  Tennes- 
see where,  in  July  1935,  a  number  of  A.  F.  of  L.  organizers  had 
made  their  appearance.  Mr.  Gray  of  the  spy  agency  was  following 
Foote's  prescription  for  the  munitions  men  —  he  was  on  his  toes, 
watching  the  situation,  and  working  fast: 


THE  RATS'  CODE  95 

Att:  700  [Mr.  L.  D.  Rice,  vice-president  and  general  manager] 

7-2«5 

I  picked  a  Tenn.  Labor  Paper,  and  found  that  there  is  con- 
siderable activity  going  on  around  Johnson  City,  Tenn.,  as  well 
as  Knox[ville];  also  the  Hosiery  Workers  are  getting  aroused  in 
Nashville,  'Tenn.  I  will  get  to  Johnson  City  as  soon  as  I  can 
without  haveing  to  make  to  long  a  jump  .  .  .  Mr.  Temple 
showed  me  a  letter  from  the  Tenn.  Mfg.  Assoc;  Sect,  from 
Nashville,  Tenn.  and  they  are  very  much  alarmed  over  there, 
as  there  Wash.  Rep.  [representative]  reports  that  AFL.  sent 
out  600  L:O  [labor  organizers]  in  the  past  two  weeks,  and 
plenty  of  them  headed  South,  so  I  will  get  out  of  here  to-mor- 
row and  work  to  ward  Nash.  Tenn.  .  .  . 
Yours  Truly, 

#423 
How  shall  we  mark  Operative  Gray's  work? 

Spelling 40 

Spotter  of  union  activity 100 

Effort 100 

That  both  the  munitions  and  the  spy  industries  should  be  on  the 
lookout  for  trouble  areas  where  they  could  sell  their  services  was  to 
be  expected.  They  are  alike  again  in  that  when  they  are  unsuccess- 
ful in  their  hunt  for  trouble  —  when  the  trouble  they  are  looking 
for  has  not  yet  come  to  the  surface  —  then  they  either  make  it  or 
fake  it.  The  story  of  how  the  armament  makers  stir  up  trouble, 
then  profit  from  the  trouble  they  have  made,  has  been  told  re- 
peatedly in  books  and  pamphlets.  But  how  do  the  spy  agencies 
make  trouble  and  profit  from  it  ? 

Mr.  Holderman,  the  hosiery  union  official  who  testified  to  an 
agency's  unsuccessful  attempt  to  hook  him,  tells  how: 

MR.  HOLDERMAN.  .  .  .  He  [the  agency  operative]  then  gave 
me  instructions  not  only  to  mail  in  the  reports  on  the  union,  to 
him,  but  also  that  I  was  to,  as  district  manager,  immediately 


96  THE  LABOR  SPY  RACKET 

tighten  up  on  conditions  in  the  Gotham  Hosiery  Co.,  which 
had  a  mill  in  Dover,  N.  J.,  and  one  in  New  York  City,  which, 
combined,  employed  about  1 200  people. 

SENATOR  LA  FOLLETTE.  What  did  you  understand  him  to 
mean  when  he  said  to  "tighten  up  on  them?" 

MR.  HOLDERMAN.  I  was  to  go  after  increasing  the  wages  and 
shorten  the  hours  in  behalf  of  the  -people  there.  We  subsequently 
checked  up  on  why  these  instructions  were  given,  and  we  found 
that  at  the  same  time  these  instructions  were  issued  to  me  the 
representative  of  the  same  company  had  approached  the  Gotham 
management. 

SENATOR  LA  FOLLETTE.  You  mean  the  same  detective  agency? 

MR.  HOLDERMAN.  The  same  detective  agency,  tfhey  ap- 
proached the  Gotham  management  and  they  told  them  that  trouble 
was  brewing  in  their  Dover  and  New  Tork  plants  and  that  they 
could  solve  their  labor  difficulties. 

SENATOR  LA  FOLLETTE.  You  mean  that  the  detective  agency 
could  solve  them  ? 

MR.  HOLDERMAN.  The  detective  agency  could  solve  these  la- 
bor difficulties  and  prevent  the  trouble  which  was  at  that  time 
pending. 

Marvelous  scheme,  isn't  it?  The  agency  sends  one  of  its  spies  into 
a  plant  through  the  back  door  to  stir  up  trouble;  then  it  sends  one  of 
its  smooth  salesmen  through  the  front  door  to  sell  its  services  in 
putting  down  the  very  trouble  that  it  has  itself  brewed!  And  a 
duped,  frightened  plant  management  usually  falls  for  it! 

This  technique  for  getting  business  is  so  fantastic  that  it's  almost 
unbelievable.  But  it's  true.  Take  the  word  of  Senator  Wheeler  of 
Montana.  On  April  7,  1937,  on  the  floor  of  the  Senate  Chamber, 
Senator  Wheeler  said:  "I  have  had  a  great  deal  of  experience  .  .  . 
with  the  industrial  spy  system  .  .  .  When  I  was  a  prosecuting 
attorney  I  had  occasion  to  investigate  some  of  these  cases.  I  found 
that  what  would  happen  would  be  that  industrial  spies  would  get 
into  a  union  and  then  would  go  out  and  try  to  get  decent  union 


THE  RATS'  CODE  97 

men  to  commit  some  crime  —  to  blow  up  a  transformer,  to  put 
dynamite  under  a  building,  or  blow  up  something  —  or  they  would 
drive  nails  into  logs  or  set  fire  to  mines  and  try  to  get  decent  men 
belonging  to  the  unions  to  do  these  very  things,  for  the  purpose  of 
creating  jobs  for  the  spies'  particular  organization.  In  two  particular 
cases  we  had  direct,  positive  evidence  of  this  being  done  .  .  . 

"As  I  said  a  moment  ago,  these  spies  would  get  into  the  union, 
and  then  would  go  out  and  create  a  situation  whereby  they  would 
frighten  the  lawyers  and  the  officers  of  the  company  to  such  an  ex- 
tent that  they  would  have  to  employ  a  great  many  more  men  to 
watch  these  'dangerous'  men;  and  when  the  'dangerous*  literature 
that  was  being  put  out,  or  the  suggestions  that  were  being  made  by 
supposedly  bad  men,  were  traced  down,  they  were  almost  invari- 
ably traced  to  the  Pinkerton  or  the  Burns  or  the  Thiel  detective 
who  was  lurking  in  the  background." 

Not  only  do  spy  agencies  make  trouble  to  get  business,  but  they 
also  fake  trouble  to  keep  the  business  once  they  have  got  it. 
Lyle  Letteer,  former  Pinkerton  operative,  tells  about  the  instruc- 
tions he  received  on  a  job  for  General  Motors,  from  Mr.  Littlejohn, 
superintendent  of  the  Atlanta  office. 

MR.  LETTEER.  .  .  .  To  use  his  expression,  he  said  that  my 
reports  would  have  to  have  more  meat  in  them. 

SENATOR  LA  FOLLETTE.  Did  Mr.  Littlejohn  tell  you  why  to 
make  them  meatier? 

MR.  LETTEER.  He  said  he  wanted  to  pull  the  investigation  along. 

SENATOR  LA  FOLLETTE.  Wanted  to  what? 

MR.  LETTEER.  Prolong  the  investigation. 

SENATOR  LA  FOLLETTE.  How  did  he  say  it  would  prolong  it  if 
you  made  your  reports  longer  and  meatier  ? 

MR.  LETTEER.  He  said  if  I  made  the  reports  longer  and  put 
more  meat  into  them,  that  the  Detroit  office  would  carry  them 
along  quite  a  while  longer  than  they  ordinarily  would  run. 

Littlejohn  of  Pinkerton's  wasn't  the  only  one  who  had  this 


98  THE  LABOR  SPY  RACKET 

bright  idea.  When  Mr.  Kuhl  worked  for  National  Corporation 
Service,  he  gave  the  operatives  under  him  the  same  cute  advice: 

SENATOR  LA  FOLLETTE.  Did  you  ever  assist  in  building  up 
jobs? 

MR.  KUHL.  Well  I  did  to  this  extent:  To  use  the  expression 
that  is  used  in  these  kind  of  companies,  I  have  went  out  and 
put  the  "heat"  on. 

SENATOR  LA  FOLLETTE.  Just  tell  US  about  that. 

MR.  KUHL.  For  instance,  an  operative  was  falling  back  in  his 
work,  or  this  client  does  not  seem  to  think  he  is  receiving 
enough  information,  why,  you  go  out  and  get  hold  of  these 
"ops"  and  tell  them;  come  right  out  and  tell  them  flat  turkey, 
"It  is  your  job,  too,  so  maybe  you  better  use  your  imagination  a 
little  and  write  something  in  here  that  is  of  interest  to  the  client" 

This  looks  very  much  as  though  the  agencies  occasionally  double- 
cross  the  employers  who  hire  them.  They  do.  As  long  ago  as  1923, 
that  fact  was  plain  to  Roger  W.  Babson,  who  has  made  it  his  life 
work  to  advise  business  men  how  to  make  money.  In  a  special 
bulletin  to  industrial  leaders  in  that  year,  Mr.  Babson  solemnly 
warned  them  against  spy  agencies.  "There  are  a  score  or  more  of 
these  industrial  spy  agencies  at  work  in  the  country.  They  act 
under  all  kinds  of  names  which  give  no  hint  of  their  real  work.  Im- 
mense sums  are  paid  to  them  by  our  employers. 

"This  is  a  serious  blunder  on  the  part  of  corporation  leaders.  It 
stirs  up  trouble  where  none  exists.  It  is  the  most  potent  breeder  of 
radicalism  that  we  have  .  .  .  The 'boring  from  within' which  radi- 
cal agitators  are  charged  with,  is  a  drop  in  the  bucket  to  the  boring 
that  the  industrial  spy  does  for  money  which  the  employer  pays. 
These  spy  agencies  set  out  to  find  rottenness,  and  if  they  do  not 
actually  find  it,  some  make  it  or  fake  it." 

It  is  now  fourteen  years  since  Mr.  Babson  wrote  this  bitter  attack 
on  one  of  the  "services"  the  detective  agencies  perform  for  corpora- 
tion leaders.  At  that  time,  strike-breaking  was  another  agency 
service  paid  for  by  industrialists.  It  still  is.  But  the  weapons  used 


THE  RATS'  CODE  99 

in  strike-breaking  have  changed  —  and  as  you  can  easily  guess,  the 
smart  dick  agencies  have  kept  abreast  of  the  times.  Where  formerly 
agency  thugs  would  use  only  blackjacks,  clubs,  and  bullets  to  break 
up  a  picket  line,  the  1937  model  includes  tear  gas,  vomiting  gas,  and 
the  like.  A  sales  circular  of  the  Lake  Erie  Chemical  Co.  thus  de- 
scribes the  effects  produced  by  one  of  its  nauseating  gases:  "Once 
rioters  have  been  subdued  with  K.O.  gas  they  will  not  invite  an- 
other dose  until  their  memory  of  the  last  experience  becomes  very 
dim,  indeed.  What  does  K.O.  gas  do  to  the  victim? 

"i.  Violent  nausea  and  vomiting. 

"  2.  Sense  of  suffocation  as  if  several  men  were  sitting  on  chest. 

"3.  Intense  pain  in  chest  and  head  .  .  ." 

This  is  actually  one  of  the  less  harmful  weapons  now  available  to 
strike-breaking  agency  thugs.  A  more  dangerous  one,  put  out  by  the 
same  company,  is  thus  described  in  the  sales  circular:  "The  gas 
from  the  Green  Band  grenade  is  invisible  making  it  more  effective 
and  terrifying,  because  it  is  not  possible  for  the  rioters  to  determine 
where  the  gas  cloud  begins  or  ends  as  is  the  case  with  all  burning- 
type  munitions."  From  another  circular,  describing  the  same 
weapon,  we  learn  that  "The  grenade  body  tears  into  ribbons  and 
these  ribbons,  together  with  firing  mechanism,  are  thrown  with 
considerable  force  in  all  directions  from  point  of  burst,  with  pos- 
sible severe  injury  to  persons  within  a  radius  of  approximately  fif- 
teen feet  thereof. 

"This  grenade  should  not  be  thrown  into  a  crowd  unless  very 
severe  treatment  is  necessary,  as  the  pain  from  the  high  concentra- 
tion of  this  gas  in  the  eyes,  nose  and  throat  is  almost  unbearable. 
Unless  drastic  treatment  is  necessary,  throw  the  grenade  about  30 
or  40  feet  'upwind*  of  the  mob." 

Pretty  toys  these,  aren't  they,  to  be  put  into  the  hands  of  strike- 
breaking agency  operatives,  many  of  them  with  criminal  records  a 
mile  long!  And  that  it  often  is  the  detective  agencies  which  use  such 
weapons  is  shown  in  part  of  a  letter  written  by  the  secretary- 
treasurer  of  the  Manville  Manufacturing  Co.  to  a  salesman:  "In 
regard  to  your  questions,  I  will  try  and  answer  them  as  follows:  Our 


ioo  THE  LABOR  SPY  RACKET 

equipment  was  used  to  break  up  the  strike  of  the  Ohio  Rubber 
Company  at  Willoughby,  Ohio,  and  to  break  up  the  strike  in  the 
Gear  Plant  of  Toledo,  Ohio;  was  used  at  the  Eaton  Axle  plant  at 
Cleveland,  at  the  Real  Silk  Hosiery  Company,  of  Indianapolis,  and 
at  a  great  many  smaller  places.  In  each  of  the  above  cases  the 
equipment  was  used  by  the  detective  agencies  brought  in  to  pro- 
tect the  plant  .  .  ." 

Further  proof.  The  following  is  particularly  interesting  because  it 
brings  to  light  the  same  kind  of  monkey  business  that  we've  met 
earlier  —  even  more  vividly.  For  here  is  a  shipment  of  gas  and  muni- 
tions, etc.,  for  the  Firestone  Tire  Company,  Akron,  Ohio,  which  is 
shipped  to  a  Joseph  Folk,  Lakewood,  Ohio,  part  of  it  sent  as  a  gift 
to  a  D.  C.  Graham,  and  billed  to  the  Pinkerton  agency! 

SENATOR  LA  FOLLETTE.  Will  you  look  at  exhibit  213,  please, 
Mr.  Ailes?  Is  this  a  copy  of  a  work  order  of  the  Lake  Erie 
Chemical  Co.? 

MR.  AILES.  It  is,  apparently. 

SENATOR  LA  FOLLETTE.  This  is  a  work  order  of  the  Lake  Erie 
Chemical  Co.  It  shows  a  large  number  of  various  kinds  of  equip- 
ment: gas  fountain  pens,  .410  caliber,  serial  number;  Baby 
Giant  gas  projector;  Baby  Giant  gas  projector  shells;  watch- 
men's clubs;  watchmen's  club  shells;  gas  riot  pistols;  gas  riot 
pistol  shells;  hand  grenades;  Universal,  Universal  C  N.  What 
does  "CN"  refer  to? 

MR.  AILES.  Tear  gas. 

SENATOR  LA  FOLLETTE.  And  "D  M"? 

MR.  AILES.  Nauseating  gas. 

SENATOR  LA  FOLLETTE.  L  R  field  gun,  L  R  shells.  That  is  long 
range  ? 

MR.  AILES.  Long  range;  yes. 

SENATOR  LA  FOLLETTE.  Band,  candles,  and  so  forth,  warning 
label  in  shipment.  One  Baby  Giant  gas  projector  and  three 
Baby  Giant  gas  projector  shells  are  marked  as  a  gift  to  D.  C. 
Graham.  Do  you  know  anything  about  that? 


THE  RATS'  CODE  101 

MR.  AILES.  I  don't  know  about  him. 

SENATOR  LA  FOLLETTE.  It  says  "  For  Firestone  Tire,  Akron, 
Ohio,  ship  to  Joseph  Folk,  Lakewood,  Ohio."  Do  you  know 
who  he  is? 

MR.  AILES.  I  do  not. 

SENATOR  LA  FOLLETTE.  And  then  it  says,  "Send  or  give  bill 
to  Pinkerton."  What  does  that  mean;  that  they  are  the  people 
to  be  billed  for  the  shipment? 

MR.  AILES.  It  probably  means  that,  if  they  are  to  get  the  bill. 

Mixed  up  as  this  transaction  was,  it  was  quite  clear  that  the 
equipment  was  to  be  used  at  the  Firestone  plant.  On  another  order, 
the  Lake  Erie  Chemical  Co.  was  not  as  frank  about  who  the  real 
purchaser  of  the  equipment  was.  Look  this  bill  over  and  try  to 
determine  who  bought  the  goods: 

July  11,  1935. 

Sold  to:  W.  H.  Grabbe,  147  South  2ist  St.  Terre  Haute,  Ind. 
Shipped  to:  J.  B.  South  c/o  Railway  Express  Co.;  Terre 
Haute  Ind.  via  B/L  5354 

Express  Paid 
75  Universal  tear  gas  candles,  no.  i,  series  Nos. 

6-284,  to  2903  and  3004  to  3015,  $10.00 $750.00 

25  Universal  K  O  &  Lightning  #5  candles,  no.  2755 

to  2779,  $14.00 350-00 

4  Long  range  field  gun  outfits  complete,  each  con- 
sisting of  — 

1  carrying  case 

7  long  range  tear  gas  shells 

7  long  range  K  O  &  tear  gas  shells 

2  illuminating  star  shells 

4  long  range  field  guns,  nos.  1 1 19,  1008,  1013, 
and  1018 

$1868.00 

Plus  express  paid 14.02 

$1882.02 


768.00 


102  THE  LABOR  SPY  RACKET 

It  looks  as  though  this  shipment  of  goods  was  sold  to  a  Mr.  W.  H. 
Grabbe,  doesn't  it  ?  Actually,  the  Columbian  Stamping  &  Enamel- 
ing Co.  of  Terre  Haute  was  the  real  purchaser.  This  particular  sale 
is  of  especial  interest  because  the  go-between  in  the  transaction  was 
Mr.  Edgar  E.  MacGriffin,  president  of  the  National  Corporation 
Service,  a  dick  agency.  MacGriffin  got  a  commission  of  20%,  or 
$373. 60  for  arranging  the  sale.  Thus  we  learn  that  not  only  do  the 
agencies  make  use  of  the  equipment  of  munitions  firms  on  jobs 
which  they  are  handling,  but  the  tie  is  even  closer  —  agency  officials 
on  occasion  even  act  as  salesmen  for  munitions  firms. 

In  fact,  the  tie  was  so  close  in  one  case  that  the  spy  agency  and 
the  munitions  firm  were  one  and  the  same.  The  agency  in  question 
was  Railway  Audit  and  the  munitions  outfit  was  Federal  Labora- 
tories, Inc.,  the  largest  of  the  munitions  firms.  Mr.  G.  Eugene  Ivey, 
whom  we  have  met  before  as  manager  of  the  Atlanta  office  of  Rail- 
way Audit,  seems  to  have  been  a  veritable  Pooh-Bah;  besides 
acting  as  manager,  he  was  lawyer  for  Railway  Audit  —  and  at  the 
same  time  he  was  District  Manager  of  Federal  Laboratories. 

SENATOR  LA  FOLLETTE.  How  long  were  you  district  manager 
for  them? 

MR.  IVEY.  Only  during  the  time  that  the  Railway  Audit  Co. 
represented  Federal  Laboratories. 

SENATOR  LA  FOLLETTE.  And  how  long  was  that  ? 

MR.  IVEY.  I  believe  about  a  year  and  a  half. 

SENATOR  LA  FOLLETTE.  And  during  that  time  you  were 
running  the  Federal  Laboratories'  business  and  the  Railway 
Audit  &  Inspection  Co.'s  business  at  the  same  time? 

MR.  IVEY.  Well,  it  was  all  one. 

SENATOR  LA  FOLLETTE.  Out  of  the  Atlanta  office? 

MR.  IVEY.  Well,  it  was  all  one. 

SENATOR  LA  FOLLETTE.  It  Was  all  One? 

MR.  IVEY.  Yes,  sir. 


THE  RATS'  CODE  103 

What  a  pity  that  this  intimate  relationship  existed  for  only  a  year 
and  a  half!  However,  the  couple  will  be  brought  together  again.  It 
must  be.  So  wonderful  a  marriage  —  the  union  of  a  detective  agency 
with  a  munitions  firm  —  cannot  be  broken  permanently.  The  two 
partners  have  so  much  in  common.  Wedlock  opens  up  possibilities 
that  are  breathtaking  in  their  magnitude. 

Think  of  it.  A  Spy  Agency-Munitions  Trust  that  could  offer 
complete  service  from  start  to  finish.  What  a  chance!  Just  imagine 
how  beautifully  the  Union-Smashing  Strike-breaking  Co.  Inc. 
could  function.  The  Trust  could  be  composed  of  four  departments 
each  one  tying  up  with  the  other,  and  all  working  together  har- 
moniously like  a  well  oiled  machine.  In  many  cases,  the  industrial- 
ists will  seek  out  the  service.  When  that  doesn't  happen,  then 
business  can  be  worked  up  in  some  such  manner: 

1st.  The  Espionage  Department  plants  a  spy  in  Mr.  Industrial- 
ist's factory  to  get  the  dope  on  any  existing  union  activity  —  if 
there  isn't  any,  he  starts  it  going. 

2nd.  At  the  appropriate  moment  the  Sales  Division's  slickest 
salesman  approaches  Mr.  Industrialist  and  sells  him  USSBC  in- 
dustrial service. 

3rd.  A  specially  trained  operative  with  a  vivid  imagination 
edits  the  spy's  reports  so  they  are  "full  of  meat,"  with  the  usual 
effect:  Mr.  Industrialist  is  thrown  into  a  panic  of  fear. 

4th.  A  representative  from  the  Munitions  Section  finds  it  a 
simple  matter  to  sell  the  frightened  Mr.  Industrialist  a  load  of 
munitions  for  "plant  protection." 

5th.  Trouble.  Either  a  strike  is  called  by  the  union  and  its  offi- 
cials when  the  situation  warrants  it,  or  else  the  spy  provokes  an 
ill-advised  strike. 

6th.  The  Strike-Breaking  Department  immediately  answers 
Mr.  Industrialist's  plea  for  assistance.  Several  hundred  strike- 
breakers enter  the  plant. 

yth.  Mr.  Industrialist's  second  and  much  larger  order  for 
munitions  is  quickly  filled. 


io4  THE  LABOR  SPY  RACKET 

8th.  A  riot  breaks  out  as  the  strike-breaking  thugs  attack  the 
unarmed  pickets  with  USSBC  Fast-Flite  shells  and  tear  gas. 

(3  WORKERS  KILLED,  14  WOUNDED) 

9th.  The  strike  is  broken. 

loth.  A  crack  salesman  now  convinces  Mr.  Industrialist  that  his 
greatest  need  is  strike  insurance.  More  spies  and  more  munitions 
are  brought  to  the  plant,  and  the  Strike-Breaking  Department 
supplies  a  permanent  staff  of  "plant  police." 

Such  a  scheme  makes  sense.  How  much  more  sensible  that  all 
these  related  services  be  supplied  by  one  big  company,  e.g.,  The 
Union-Smashing  Strike-Breaking  Co.  Inc.,  than  that  a  lot  of  little 
separate  firms  be  competing  for  the  different  parts  of  what  is 
essentially  one  business.  The  Trust  idea  is  not  new.  It  has  happened 
in  other  fields.  Why  not  in  this  one? 

The  obvious  first  step  is  to  find  an  experienced  person  with  a 
genius  for  organization.  Who  will  perform  for  this  industry  the 
organizing  job  which  Rockefeller  did  for  oil  and  Mellon  for  alum- 
inum ?  The  man  who  attempts  it  must  have  all  the  energy,  cunning, 
and  strength  of  our  famous  robber  barons;  he  must  be  ruthless, 
dishonest,  crafty,  diabolical,  corrupt,  and  lawless. 

The  encouraging  thing  is  that  the  search  for  an  individual  with 
all  these  essential  qualities  need  not  be  extensive.  Most  agency 
officials  today  can  easily  fill  the  bill. 


VI.   Employers  Organize 


We  rarely  hear,  it  has  been  said,  of  the  combinations  of  masters; 
though  frequently  of  those  of  workmen.  But  whoever  imagines, 
upon  this  account,  that  masters  rarely  combine,  is  as  ignorant  of 
the  world  as  of  the  subject.  Masters  are  always  and  everywhere  in 
a  sort  of  tacit,  but  constant  and  uniform  combination  .  .  .  We 
seldom,  indeed,  hear  of  this  combination,  because  it  is  the  usual, 
and  one  may  say,  the  natural  state  of  things  which  nobody  ever 
hears  of. 

—  ADAM  SMITH,  Wealth  of  Nations 

THAT  WAS  WRITTEN  in  1776,  the  year  we  declared  our  inde- 
pendence from  England.  What  was  true  at  that  time  is  more  than 
ever  true  today.  With  the  rise  of  capitalist  industry,  combinations 
of  employers  have  reached  their  highest  development.  In  the 
United  States  more  than  2,000  employers'  associations  have  been 
organized. 

Why  ?  Professor  Clarence  E.  Bonnett,  in  his  Employers9  Associa- 
tions in  the  United  States,  a  standard  book  on  the  subject,  defines 
employers'  associations  and  gives  us  the  reason  for  their  formation: 
"Any  association,  alliance,  league  or  federation  which  intends  to 
promote,  directly  or  indirectly,  primarily  the  employers'  interest  in 
relation  to  labor,  is  an  employers'  association." 

Usually  it's  easy  to  spot  an  employers'  association  from  its  name. 
When  you  hear  of  the  National  Association  of  Manufacturers,  or  the 
Akron  Employers'  Association,  or  the  National  Metal  Trades 
Association,  you  know  at  once  what  it  is.  If  you  read  the  speeches 
delivered  at  the  meetings  of  the  United  States  Chamber  of  Commerce 
or  any  of  its  local  branches,  the  fact  that  they  are  employers'  associa- 

105 


106  THE  LABOR  SPY  RACKET 

tions  devoted  to  promoting  employers*  interests  becomes  plain  im- 
mediately. You  are,  however,  apt  to  be  fooled  by  such  names  as  the 
"Stark  County  Tax  League,"  or  the  "Citizens'  Alliance  of  Ram- 
sey and  Dakota  Counties."  These,  too,  are  types  of  employers' 
associations  just  as  any  company  union  is.  A  good  test  is:  who 
puts  up  the  money.  If  employers'  money  is  used  to  support  an 
association,  it's  a  safe  bet  that  its  purpose  is  to  promote  employers' 
interests. 

Many  employers  in  the  United  States  feel  that  it  is  to  their 
interest  to  crush  genuine  unionism.  A  major  purpose  of  employers' 
associations,  therefore,  is  to  smash  trade  unions.  It  is  no  surprise  to 
us  to  learn,  then,  that  employers'  associations  are  among  the  best 
clients  of  the  dick  agencies.  W.  Sherman  Burns  so  informs  all  his 
office  managers  in  a  letter  ordering  them  to  solicit  the  business  of 
some  one  hundred  odd  associations  in  every  part  of  the  country: 

General  Instructions 

All  Office  Letter  #704 

Re:  Soliciting,  industrial  work. 

NEW  YORK,  July  28,  1936 
To  all  offices: 

Attached  is  a  list  of  associations,  their  addresses,  name  of 
active  officer  and  telephone  number.  This  list  was  secured  by 
Mr.  Patterson  of  our  Detroit  Office,  who  received  information 
at  the  time  of  securing  this  list  that  all  of  these  organizations 
are  very  much  interested  in  industrial  undercover  work  and 
have  a  great  deal  to  say  in  their  respective  territories,  in  an 
advisory  capacity  as  to  what  industrial  undercover  service 
should  be  utilized  by  their  members. 

One  of  the  principal  functions  of  these  associations  and  their 
officials  is  to  make  a  study  of  the  labor  movement  and  to  keep 
their  members  advised  of  all  developments  concerning  their 
movement  .  .  . 

It  is  therefore  suggested  that  each  manager  personally  con- 
tact with  the  officials  of  these  organizations  in  the  cities  where 


United  Automobile  organizers  show  a  friendly  smile  as  Ford's 
service  men  advance  grimly.  The  unionists  are,  left  to  right,  Robert 
Cantor,  Victor  Reuther,  Richard  T.  Frankensteen,  and  J.  J. 
Kennedy  (Pictures,  Inc.} 


The  muffled  target  in  the  center  is  Frankensteen,  chief  organizer 
for  the  Detroit  district.  The  old  guard  tactic  of  pulling  up  the 
coat  and  then  slugging  is  shown  graphically  here  (Pictures,  Inc.] 


i 


va 


Down  below  —  The  Frankensteen  battle  took  place  on  the  overpass. 
Guards  go  to  work  on  another  union  man  (Pictures,  Inc.) 


Memorial  Day  Massacre"  at  Republic  Steel 


(Pictures,  Inc.) 


EMPLOYERS  ORGANIZE  107 

our  offices  are  located,  and  in  other  localities,  contact  by 
mail  .  .  . 

W.  SHERMAN  BURNS 

One  of  the  names  on  the  attached  list  was  that  of  the  "  Employers 
Association  of  Akron,  500  Central  Savings  &  Trust,  Akron,  Ohio 
.  .  .  H.  C.  Parsons,  Sec."  The  Burns  man  whose  job  it  was  to 
solicit  business  from  Mr.  Parsons  was  doomed  to  disappointment. 
A  rival  of  the  Burns  agency,  the  Corporations  Auxiliary  Co., 
had  had  the  business  of  this  employers'  association  sewed  up  for 
over  a  quarter  of  a  century.  Mr.  Parsons,  on  the  stand,  tells  the 
story.  It  is  a  fascinating  story.  It  shows,  among  other  things,  that 
four  manufacturers  of  tires,  in  fierce  competition  with  each  other, 
were  able  to  forget  their  business  enmity  and  unite  in  an  organiza- 
tion presenting  a  solid  front  against  labor;  rivals  in  business,  friends 
in  anti-labor  activities.  Nor  did  their  association  stand  alone.  It 
had  a  close  connection  with  similar  employers'  associations  through- 
out the  country.  A  local  union  of  manufacturers  tied  to  a  national 
union.  In  effect,  an  A.  F.  of  M.  —  American  Federation  of  Manu- 
facturers. Adam  Smith  knew  his  stuff. 

Here  is  Mr.  Parsons  testifying: 

SENATOR  LA  FOLLETTE.  What  is  your  occupation,  Mr.  Par- 
sons? 

MR.  PARSONS.  I  am  secretary-treasurer  of  the  Employers' 
Association  of  Akron. 

SENATOR  LA  FOLLETTE.  When  was  the  Employers'  Associa- 
tion formed,  approximately? 

MR.  PARSONS.  I  think  1903. 

SENATOR  LA  FOLLETTE.  Who  are  the  officers  of  the  association 
at  present? 

MR.  PARSONS.  There  is  Mr.  Slusser,  of  Goodyear;  Mr.  Pit- 
tinger,  of  Firestone  .  .  .  Mr.  Charles  Jahent,  of  General 
Tire  .  .  .  Mr.  T.  G.  Graham,  factory  manager  of  the  B.  F. 
Goodrich  Company. 


108  THE  LABOR  SPY  RACKET 

SENATOR  LA  FOLLETTE.  Are  those  all  on  the  executive  com- 
mittee? 

MR.  PARSONS.  That  is  all. 

SENATOR  LA  FOLLETTE.  The  executive  committee,  then,  is 
confined  to  representatives  of  the  tire  manufacturing  com- 
panies in  Akron  ? 

MR.  PARSONS.  Yes;  at  the  present  time. 

SENATOR  LA  FOLLETTE.  How  much  do  the  companies  pay  to 
the  Employers'  Association  each  year? 

MR.  PARSONS.  It  formerly  was  5  cents  per  employee  and  then 
was  later  raised  to  8  cents,  and  more  recently  again  to  5  cents. 
[A  list  of  the  members  of  the  association  and  the  amounts  of 
their  contributions,  1933-1936,  is  in  Appendix  D.-AUTHOR] 

SENATOR  LA  FOLLETTE.  What  salary  did  you  receive  from  the 
association,  Mr.  Parsons? 

MR.  PARSONS.  $8,019  this  last  year. 

SENATOR  LA  FOLLETTE.  What  are  the  chief  items  of  expendi- 
ture of  the  association? 

MR.  PARSONS.  The  ordinary  office  expenditures,  salaries, 
expenditures  for  special  service. 

SENATOR  LA  FOLLETTE.  What  do  you  mean  by  "special  serv- 
ice"? 

MR.  PARSONS.  The  service  of  the  Corporations  Auxiliary 
Co. 

SENATOR  LA  FOLLETTE.  And  how  long  have  you  had  the  serv- 
ice of  Corporations  Auxiliary? 

MR.  PARSONS.  As  I  remember  now,  there  were  somewhat  the 
same  services  there  at  the  time  I  became  secretary.  [33  years 
ago] 

SENATOR  LA  FOLLETTE.  And  it  has  continued  throughout 
the  time  you  have  been  secretary? 

MR.  PARSONS.  Off  and  on,  as  I  remember  it;  yes. 


EMPLOYERS  ORGANIZE  109 

SENATOR  LA  FOLLETTE.  Have  the  activities  of  labor  organ- 
izers for  outside  unions  had  anything  to  do  with  the  ebb  and 
flow  of  your  employment  of  Corporations  Auxiliary  ? 

MR.  PARSONS.  Yes. 

SENATOR  LA  FOLLETTE.  They  have  risen  at  times  when  or- 
ganizational activity  by  outside  unions  was  in  progress  ? 

MR.  PARSONS.  YeS. 

SENATOR  LA  FOLLETTE.  And  fallen  when  they  were  not  ? 
MR.  PARSONS.  That  is  about  right  .  .  . 

SENATOR  THOMAS.  Do  you  attend  annual  meetings  of  other 
employers'  organizations  ? 

MR.  PARSONS.  YeS. 

SENATOR  THOMAS.  What  organizations  are  you  affiliated 
with  in  that  way? 

MR.  PARSONS.  Well,  we  are  not  affiliated.  I  attend  the  meet- 
ings of  the  National  Association  of  Manufacturers,  the  Na- 
tional Founders  Association,  on  invitation,  the  National  Metal 
Trades,  and  the  National  Industrial  Conference.  We  are  affili- 
ated with  the  National  Industrial  Council. 

SENATOR  LA  FOLLETTE.  In  1936  I  think  the  records  you  fur- 
nished the  committee  indicate  that  your  costs  for  Corporations 
Auxiliary  Service  were  approximately  $21,000  .  .  .  The  total 
of  your  income  in  1936  .  .  .  was  $36,000,  and  your  own  salary 
was  $8,000;  so  it  is  a  fair  deduction,  is  it  not,  from  these  figures, 
that  the  bulk  of  the  activities  of  the  employers'  association  in 
Akron  was  devoted  to  labor  espionage? 

MR.  PARSONS.  I  would  not  say  the  bulk  of  the  activities, 
Senator;  I  would  say  the  bulk  of  the  expenditures. 

SENATOR  LA  FOLLETTE.  .  .  .  The  principal  activity  of  the 
association  aside  from  the  work  that  you  and  your  secretary 
did  with  the  mimeograph  and  the  meetings  and  the  discussing 
of  these  various  matters  with  representatives  of  the  various 


i  io  THE  LABOR  SPY  RACKET 

companies  that  you  have  told  us  about,  the  principal  and  sole 
activity  of  the  association  outside  of  that  was  industrial 
espionage  ? 

MR.  PARSONS.  Yes,  that  is  true. 

Now  all  this  testimony  of  Mr.  Parsons  was  very  embarrassing  to 
Mr.  Paul  W.  Litchfield,  the  president  of  the  Goodyear  Tire  and 
Rubber  Co.,  who  had  testified  the  previous  few  minutes.  His 
testimony  had  sounded  sincere,  straightforward  —  just  what  was 
to  be  expected  of  a  great  captain  of  industry.  But  before  Par- 
sons had  gone  very  far  it  developed  that  Mr.  Litchfield  was  as 
much  of  a  twister  as  the  other  witnesses  —  perhaps  a  little  worse. 
The  pious  flourish  with  which  he  began  ended  in  a  complete  fizzle. 
Read  the  testimony  and  witness  the  collapse  of  the  highly  inflated 
Goodyear  dirigible  as  it  is  brought  down  to  earth. 

SENATOR  LA  FOLLETTE.  Mr.  Litchfield,  the  committee  would 
be  interested  in  having  your  views  on  the  use  of  labor  espionage 
and  strike-breaking  agencies,  if  you  would  be  so  kind  as  to  give 
them  to  us. 

MR.  LITCHFIELD.  When  I  came  with  the  company  in  its  early 
days  we  had  one  or  two  operatives  in  the  plant,  which  we  car- 
ried on  for  several  years.  In  1913  when  we  began  to  grow,  my 
experience  witb  that  sort  of  thing  was  such  that  it  led  me  to  pass  on 
a  firm  order  that  from  1913  on  there  would  be  no  outside  agencies, 
no  espionage  in  the  plant  whatsoever;  and  I  think  that  policy  has 
been  carried  out.  We  have  not  employed  any  outside  agency  of 
espionage  or  of  strike-breaking  organizations  since  I  have  been 
president  of  the  factory,  or  manager  of  the  company,  so  far  as  I 
know. 

SENATOR  LA  FOLLETTE.  Did  you  or  did  you  not  find  that  the 
use  of  industrial  espionage  tended  to  disrupt  the  good  relations 
between  employees  and  the  employers? 

MR.  LITCHFIELD.  We  were  inclined  to  that  opinion. 


EMPLOYERS  ORGANIZE  in 

Just  the  kind  of  forthright  straight-from-the-shoulder  statement 
that  you  would  expect  from  the  head  of  one  of  the  greatest  com- 
panies in  the  world.  Mr.  Litchfield  felt  that  the  spy  system  dis- 
rupted the  good  relations  between  boss  and  worker,  so  he  firmly 
ordered  that  henceforth  there  was  to  be  "no  espionage  in  the  plant 
whatsoever"  So  far  so  good.  Our  schoolboy  faith  in  this  great  busi- 
ness leader  is  strengthened.  Let  us  go  on: 

SENATOR  LA  FOLLETTE.  As  I  understand  it,  the  Goodyear 
Tire  and  Rubber  Company  is  a  member  of  the  Akron  Em- 
ployers' Association;  is  that  correct? 

MR.  LITCHFIELD.  Yes;  we  are  members  of  the  Akron  Em- 
ployers' Association,  the  same  as  any  trade  association  or  any 
other  kind  of  an  association. 

SENATOR  LA  FOLLETTE.  And  what  is  your  understanding  of 
the  service  that  the  association  renders  to  your  company  and 
other  members? 

MR.  LITCHFIELD.  It  is  just  a  general clearing  bouse  of  informa- 
tion among  the  manufacturers.  I  have  never  questioned  very 
much  as  to  what  service  it  rendered,  on  account  of  the  fact  that 
we  just  belong,  the  same  as  we  belong  to  any  trade  association, 
chamber  of  commerce,  or  anything  else.  We  are  assessed  our 
pro  rat  a  share. 

SENATOR  LA  FOLLETTE.  Well,  I  assume  that  you  must  feel 
that  the  services  rendered  are  worth  while  because  of  your 
contribution  of  $50,000  for  2,  years  —  for  4  years,  pardon  me. 
Could  you  tell  us  in  a  little  more  detail  what  services  the  asso- 
ciation rendered? 

MR.  LITCHFIELD.  Well,  so  far  as  I  know,  the  only  thing  that  has 
come  to  my  particular  notice  is  statistics,  from  time  to  time,  as 
to  the  number  employed  in  each  plant,  and  things  of  that  nature. 

SENATOR  LA  FOLLETTE.  Are  you  familiar  with  the  fact,  Mr. 
Litchfield,  that  during  the  year  1936  the  Akron  Employers' 


ii2  THE  LABOR  SPY  RACKET 

Association  paid  in  excess  of  $21,000,  or  the  bulk  of  its  income 
to  the  Corporations  Auxiliary  Co.  for  industrial  espionage? 

MR.  LITCHFIELD.  I  did  not  know  that;  no. 

SENATOR  LA  FOLLETTE.  And  had  you  known  it,  would  such  an 
expenditure  have  met  with  your  approval? 

MR.  LITCHFIELD.  It  would  not  so  far  as  our  plant  is  concerned. 
What  they  do  outside  we  do  not  have  anything  to  do  with,  in 
the  management  of  that  association. 

SENATOR  LA  FOLLETTE.  Were  you  aware  of  the  fact  that  the  as- 
sociation had  undercover  men  in  your  plant? 

MR.  LITCHFIELD.  /  was  not  aware  of  it. 

Nothing  really  wrong  so  far.  It  may  be  argued  that  Mr.  Litch- 
field  was  showing  bad  judgment  in  paying  out  so  much  of  his  stock- 
holders' money  to  an  association  which  supplied  his  firm  with  noth- 
ing more  than  a  kind  of  statistical  service.  That  may  be  true.  But 
on  the  absence  of  industrial  espionage  in  his  plant  he  still  remains 
firm. 

Then  Parsons  testified.  Now  look  for  Mr.  Litchfield's  about-face. 

SENATOR  LA  FOLLETTE.  Mr.  Litchfield,  were  you  a  member  of 
the  executive  committee  of  the  association  at  any  time  ? 

MR.  LITCHFIELD.  I  do  not  know  whether  it  was  the  executive 
committee  or  what  it  was,  but  I  was  a  representative  of  Good- 
year many  years  ago,  when  I  was  factory  manager,  in  the  early 
days. 

SENATOR  LA  FOLLETTE.  Now,  Mr.  Litchfield,  in  order  that 
the  record  may  be  complete,  at  the  time  you  served  on  this 
executive  committee,  did  you  or  did  you  not  know  of  this 
arrangement  that  the  association  had  with  Corporations 
Auxiliary  for  undercover  men? 

MR.  LITCHFIELD.  I  think  I  did  know  that  they  did  have  that  kind 
of  an  arrangement. 

SENATOR  LA  FOLLETTE.  During  all  the  time  that  you  were  a 
representative  of  the  Goodyear  Company  in  this  employers'  asso- 


EMPLOYERS  ORGANIZE  113 

ciation  you  knew,  did  you  not,  that  they  were  using  undercover 
agents? 

MR.  LITCHFIELD.  /  think  that  very  likely  I  was  aware  of  that 
fact. 

SENATOR  LA  FOLLETTE.  Mr.  Litchfield,  I  understood  you,  in 
response  to  a  question  by  Senator  Thomas,  to  say  you  never 
took  any  action  while  you  were  representing  the  Goodyear 
Company  on  the  employers'  association,  to  secure  an  abandon- 
ment of  their  use  of  industrial  espionage  technique;  is  that 
correct  ? 

MR.  LITCHFIELD.  I  do  not  recall  I  ever  discussed  that  matter, 
except  to  state  my  disapproval  of  the  practice.  I  do  not  think 
I  ever  pursued  it  any  further. 

SENATOR  LA  FOLLETTE.  Did  you  make  any  effort  after  you 
assigned  someone  else  to  the  work,  to  ascertain  whether  or 
not  they  had  abandoned  it? 

MR.  LITCHFIELD.  No;  I  did  not. 

SENATOR  LA  FOLLETTE.  And  your  company  continued  to 
contribute  to  the  association  and  be  a  member  of  it? 

MR.  LITCHFIELD.  We  contributed  to  that  association  the 
same  as  a  great  many  others,  in  that  they  were  one  of  a  large 
group  and  wanted  a  group  to  be  a  clearing  house,  but  we 
never  attempted  to  run  the  association. 

SENATOR  LA  FOLLETTE.  In  the  last  4  years  you  were  paying 
out  on  the  average  of  $  17,000  a  year  to  this  association.  As  far 
as  your  knowledge  went,  you  did  not  know  there  had  been  any 
change  in  the  policy  of  this  association  in  the  use  of  industrial 
espionage? 

MR.  LITCHFIELD.  No. 

Turn  back  quickly  to  the  opening  brave  speech  of  this  witness. 

Seems  like  another  fellow  must  have  said  those  things,  doesn't  it? 

The  Goodyear  Tire  and  Rubber  Co.  was  in  partnership,  through 


n4  THE  LABOR  SPY  RACKET 

the  Akron  Employers'  Association,  with  its  biggest  business  rivals. 
The  bond  that  united  these  competitors  was  the  desire,  common  to 
all  of  them,  to  clamp  down  on  the  organizational  activities  of  their 
workers.  When  the  workers  of  the  Goodyear  Co.  went  out  on  strike 
in  1936,  one  of  those  miraculous  "citizens'  organizations"  that 
spring  up  out  of  thin  air  to  fight  the  strikers,  suddenly  made  its 
appearance.  The  "Akron  Law  and  Order  League"  was  not  a  sur- 
prise to  Mr.  Litchfield.  He  knew  it  was  going  to  be  launched  —  in 
fact  he  had  discussed  its  organization  with  the  presidents  of  Good- 
year's  competitors.  His  own  company  contributed  "something  in 
the  neighborhood  of  $15,000"  to  it. 

Mr.  Litchfield  was  listening  in  on  the  radio  when  former  Mayor 
C.  Nelson  Sparks  went  on  the  air  for  recruits  for  the  Law  and 
Order  League.  What  was  the  program  of  this  citizens'  organization? 
What  did  Mr.  Litchfield  hear  the  nurse  of  his  $15,000  baby  say? 
Keep  the  name  of  the  organization  in  mind  as  you  read  the  remarks 
Mayor  Sparks  made,  after  mentioning  the  names  of  John  Brophy 
and  several  other  representatives  of  labor  organizations: 

Help  us  to  gang  up  for  constitutional  law  and  order  in  this 
wonderful  city.  Help  us  to  make  this  Law  and  Order  League  so 
representative  of  public  opinion  that  we  can  say  to  those 
out-of-town  radical  leaders,  who  have  lighted  the  fires  of  dis- 
content in  this  city,  to  get  the  hell  out  of  here,  and  we  are  not 
going  to  be  too  much  interested  in  tbe  dignity  of  their  going. 

This  from  the  former  mayor  of  the  city,  the  president  of  the  Law 
and  Order  League!  Small  wonder  that  The  Akron  Ee aeon-Journal 
was  alarmed.  Its  editorial  for  March  iyth  clearly  pointed  out  that 
the  Sparks'  speech  was  a  direct  incitation  to  violence: 

No  Room  for  Vigilantes! 

The  most  ominous  note  yet  sounded  in  the  prolonged 
Goodyear  strike  is  the  call  for  recruits  to  a  "Law  and  Order 
League."  The  name  is  a  misnomer. 

Resort  to  organization  of  a  "citizens'  vigilante"  to  open 
the  Goodyear  Company  plants  is  an  open  invitation  to 


EMPLOYERS  ORGANIZE  115 

rioting  and  violence.  It  is  deliberately  provocative  and  in- 
flammatory. It  will  produce  the  exact  opposite  of  law  and 
order  .  .  . 

The  speeches  of  former  Mayor  C.  Nelson  Sparks,  over  the 
radio  Sunday,  were  unfortunate  and  ill-advised.  He  talked 
loosely  of  driving  leaders  of  the  strike  out  of  town,  imply- 
ing that  typical  vigilante  mob  methods  might  be  in- 
voked .  .  . 

Unfortunately  there  was  not  a  single  note  of  calm 
reasoned  thinking  in  the  speech.  It  was  the  typical  product 
of  hysteria,  when  sanity  is  needed.  It  was  incitation  to 
trouble,  rather  than  an  invitation  to  peace. 

The  Sparks  move,  dearly  endorsed  by  the  Goodyear  Com- 
pany, has  evoked  a  warning  from  the  strikers  that  violence 
would  be  met  with  violence.  Any  man  who  stopped  to 
weigh  the  present  tense  situation  would  have  known  that 
the  counter-threat  was  inevitable  .  .  . 

If  the  Law  and  Order  League  does  not  at  once  abandon 
its  stupid  and  dangerous  program,  then  Akron  can  prepare 
itself  for  a  bath  of  blood  .  .  . 

In  the  face  of  all  this  talk  of  violence,  we  renew  our 
appeal  for  sanity  and  right-thinking.  We  are  thinking  in 
terms  of  human  lives.  We  are  thinking  in  terms  of  this 
city's  future.  The  idea  that  any  group  of  citizens  can  take 
the  law  into  their  own  hands  cannot  be  tolerated  for  a  single 
minute. 

Let  there  be  sanity  and  industrial  peace,  not  madness 
and  war. 

The  italicized  words  in  the  foregoing  quotation  show  that  there 
was  no  doubt  in  the  editorial  writer's  mind  as  to  who  was  behind 
the  Law  and  Order  League.  Nor  should  there  be  any  doubt  in  your 
mind  as  to  who  was  behind  the  Flint  Alliance  that  was  so  miracu- 
lously conceived  in  the  General  Motors  strike;  or  the  "John  Q. 
Public  League"  and  similar  "citizens'  alliance"  groups  that 
sprang  up  in  the  recent  steel  strike.  They  are  all  phoney.  They  are 
dummy  employers'  organizations  —  the  newest  technique  in 
strike-breaking. 

Convincing  proof  of  this  fact  was  furnished  to  the  La  Follette 
Committee  by  Mr.  E.  T.  Cunningham,  in  his  testimony  concerning 
the  RCA  strike  in  Camden,  N.  J.  in  1936.  Mr.  Cunningham,  in 
charge  of  labor  relations  for  RCA,  was  impressed  with  a  letter  of 


ii6  THE  LABOR  SPY  RACKET 

introduction  from  Governor  Hoffman,  presented  by  Max  Sherwood 
of  the  Sherwood  Detective  Bureau.  (The  close  relationship  of  many 
local,  state,  and  government  officials  with  the  dick  agencies  is 
shameful.)  Mr.  Cunningham  hired  the  Sherwood  agency  on  the 
strength  of  the  Hoffman  introduction,  plus  the  promises  of  Sher- 
wood and  his  assistant,  Williams.  The  description  of  the  Sherwood 
technique  is  very  revealing: 

MR.  CUNNINGHAM.  .  .  .  Both  Sherwood  and  Williams  stated 
that  the  old  method  of  using  strike-breakers  and  violence  and 
things  of  that  kind  to  win  or  combat  a  strike  were  things  of  the 
past;  that  the  way  to  win  a  strike  was  to  organize  community 
sentiment;  that  they  had  been  very  successful  in  handling  plans 
of  that  sort.  They  showed  me  enrollment  slips  —  I  cannot 
recall  the  exact  title,  but  it  was  something  like  "Citizens'  Wel- 
fare Committee"  of  such  and  such  a  city.  They  showed  me  a 
large  full  page  ad,  I  believe  from  an  Akron  newspaper,  in  con- 
nection with  a  strike.  They  said  they  handled  that.  They  sent 
men  from  door  to  door  to  get  citizens  to  sign  these  membership 
slips,  and  if  possible  to  get  them  to  contribute  to  advertise- 
ments which  would  be  run  over  the  name  of  the  so-called  citi- 
zens' welfare  organization,  saying  good  things  about  the 
company  and  endeavoring  in  that  way  to  promote  a  friendly 
public  attitude  to  support  the  company.  The  details  were  a 
little  more  than  that,  but  in  substance  that  was  the  plan. 

SENATOR  LA  FOLLETTE.  Did  he  say,  or  did  you  gather  from 
the  newspaper  advertisements  and  the  blanks  that  he  showed 
you,  just  what  the  citizens'  committee  was  to  do? 

MR.  CUNNINGHAM.  Well,  it  was  not  clear,  other  than  the 
favorable  public  reaction,  throwing  the  weight  to  one's  side  as 
against  the  other;  that  is  the  only  — 

SENATOR  LA  FOLLETTE.  Did  this  Akron  newspaper  ad,  as  you 
remember,  was  it  signed  by  a  citizens'  committee? 

MR.  CUNNINGHAM.  Citizens'  welfare  committee,  or  something 
like  that. 


EMPLOYERS  ORGANIZE  117 

SENATOR  LA  FOLLETTE.  Was  the  general  effect  of  the  adver- 
tisement to  create  the  impression  on  the  reader  that  the  citi- 
zens' committee  was  taking  the  company  side  of  the  affair  in 
Akron,  so  to  speak? 

MR.  CUNNINGHAM.  Tes;  and 'without  any  apparent  identity  with 
the  company;  it  was  to  appear  as  an  independent  proposal  as  Jar  as 
the  public  was  concerned. 

SENATOR  THOMAS.  Did  he  show  you  any  editorials  that  he 
thought  he  could  have  printed  in  the  newspapers  as  a  result  of 
this  advertising? 

MR.  CUNNINGHAM.  There  was  something  on  that.  My  memory 
is  not  very  good  on  just  what  he  did  show  me,  and  I  would  not 
want  to  say  exactly,  but  there  was  that  impression,  that  edi- 
torials and  news  articles  would  be  developed  but  that  the 
citizens  would  be  organized  to  take  the  lead  in  the  interest  of 
the  company  and  employment  and  they  would  organize  that 
and  the  company  apparently  was  not  having  anything  to  do 
with  it. 

SENATOR  THOMAS.  You  apparently  got  the  impression  his  big 
job  was  to  mold  public  sentiment  ? 

MR.  CUNNINGHAM.  That  was  the  impression.  At  the  time,  the 
strike  was  something  new  to  me  and  I  thought  it  was  worth 
trying. 

SENATOR  THOMAS.  He  was  to  use  the  radio,  newspapers,  and 
house-to-house  methods  ? 

MR.  CUNNINGHAM.  YeS,  sir. 

SENATOR  THOMAS.  That  is  what  they  call  missionary  work  in 
spy  terminology;  to  take  advantage  of  any  opportunity  to 
build  public  sentiment,  feeling  that  pressure  from  without 
would  probably  do  more  good  than  work  from  within. 

MR.  CUNNINGHAM.  Yes,  sir;  that  was  substantially  my 
understanding. 

SENATOR  LA  FOLLETTE.  Mr.  Cunningham,  at  this  conference 
did  they  mention  the  fact  that  this  might  also  be  referred  to  as  a 
law  and  order  league,  or  something  like  that  ? 


n8  THE  LABOR  SPY  RACKET 

MR.  CUNNINGHAM.  Yes,  sir.  That  was  the  main  theme,  now 
that  you  remind  me;  yes. 

It  should  be  clear  from  this  testimony  that  those  people  who  join 
the  "back-to-work"  movements,  the  vigilante  committees,  law  and 
order  leagues,  etc.  are  the  dupes  of  the  strike-breaking  dick  agencies, 
hired  by  the  employers. 

Perhaps  the  most  representative  of  employers'  organizations  in 
the  United  States  is  the  National  Metal  Trades  Association.  For- 
tunately, we  need  no  longer  guess  as  to  how  it  functions  —  we 
know  now,  because  its  officers  were  witnesses  before  the  La  Follette 
Committee. 

The  National  Metal  Trades  Association  on  January  15,  1937, 
had  a  membership  of  952  plants.  It  takes  in  those  firms  which  em- 
ploy machinists,  coppersmiths,  boilermakers,  pipefitters,  etc. — 
plants  engaged  in  the  manufacture  of  metals.  The  association  be- 
gan in  1899  with  about  forty  members.  Some  of  the  well-known 
member  firms  are: 

Chicago  Branch  Kelvinator  Co. 

Continental  Can  Co.   (5  Hartford  Branch 

plants)  United  Aircraft  Mfg.  Co., 

Stewart  Warner  Corp.  Pratt  &  Whitney  Div. 

Cleveland  Branch  Underwood  Elliot  Co. 

AddressographMultigraphCo.      Indianapolis  Branch 

Warner  &  Swasey  Co.  Chrysler  Corp. 

Detroit  Branch  Columbian   Enameling  & 

Briggs  Manufacturing  Co.  Stamping  Co. 

Chrysler  Corp.  Milwaukee  Branch 

Fisher  Body  Corp.  Allis-Chalmers  Mfg.  Co. 

Kelsey  Hayes  Wheel  Co.  Cutler  Hammer,  Inc. 

Murray  Corp.  of  America  New  York  &  New  Jersey  Branch 

Timken  Detroit  Axle  Co.  Otis  Elevator  Co.,  Harrison 

Grand  Rapids  Branch  Otis  Elevator  Co.,  Yonkers 

Grand  Rapids  Brass  Co.  Wright  Aero.  Corp. 


EMPLOYERS  ORGANIZE  119 

Rhode  Island  Branch  St.  Louis  Branch 

Brown  &  Sharpe  Mfg.  Co.  Continental  Can  Co.  (2  plants) 

Morse  Twist  Drill  &  Mch.  Co.         Wagner  Elec.  Corp. 

The  membership  is  based  upon  plants.  Continental  Can  or 
Chrysler,  for  example,  do  not  take  out  one  membership  for  all  their 
plants,  but  each  plant  takes  out  its  own  individual  membership. 
The  association  has  twenty-five  local  branches  with  headquarters 
in  Chicago.  Each  of  the  branches  employs  a  full-time  staff. 

Mr.  Homer  D.  Sayre,  the  Commissioner  of  the  association,  is  the 
chief  active  official.  On  the  stand,  he  explained  the  purpose  of  the 
organization  in  terms  strongly  reminiscent  of  Smith,  president  of 
Corporations  Auxiliary:  ".  .  .  The  membership  itself  sees  the  need 
for  the  work  of  this  association,  which  is  the  attempt  to  establish 
harmonious  and  mutual  relations  in  the  shops  of  its  members,  be- 
tween its  members  and  their  employees  .  .  .  our  primary  interest 
...  is  to  try  and  get  the  employer  and  employee  to  believe  that 
their  interests  are  mutual  .  .  ." 

Sounds  familiar,  doesn't  it?  The  pious  talk  is  familiar  —  and  the 
method  of  establishing  "harmonious  relations'*  between  the  em- 
ployer and  employee  whose  "interests  are  mutual"  is  also  familiar. 
For  the  National  Metal  Trades  Association  is  not  only  an  em- 
ployers' get-together  group;  it  is  a  spy  agency  and  strike-breaking 
agency  as  well.  It  attains  its  harmonious  relations  by  the  usual 
method  of  union-smashing.  It  is  a  stout  believer  in  the  principle 
of  the  "open  shop"  —  a  shop  open  to  non-union  members  only.  It 
is  very  much  concerned  about  the  liberty  and  freedom  of  the  work- 
ers in  its  member  plants  —  it  defends  to  the  last  these  workers'  in- 
alienable right  to  choose  not  to  belong  to  a  real  union.  When  these 
workers  fall  into  error,  when  they  show  signs  of  exercising  their 
equally  inalienable  right  to  join  their  own  union,  then  the  spies  go 
to  work,  the  men  are  quietly  discharged,  and  harmonious  relations 
are  again  restored.  The  union  men,  dubbed  "agitators,"  are  black- 
listed and  peace  reigns  in  the  N.M.T.A. 


120  THE  LABOR  SPY  RACKET 

But  even  the  best  laid  plans  go  wrong.  Suppose  this  smooth- 
running  machinery  cracks  up  and  the  workers,  in  their  blindness, 
forget  for  a  moment  that  their  interests  and  the  boss's  are  mutual 
and  go  out  on  a  strike.  There  is  still  no  occasion  to  worry.  The 
N.M.T.A.  is  prepared  to  meet  the  situation.  Article  XIII,  Section 
3,  of  its  constitution  gives  assurance  to  the  member  plant  that 
strike-breakers  will  be  furnished  up  to  seven-tenths  of  the  number 
of  workers  for  which  the  member  has  been  paying  dues.  "In  the 
case  of  a  strike  in  the  shop  of  a  member,  the  Association  may,  upon 
request  of  the  member,  assist  in  procuring  workers  to  replace  the 
strikers;  but  the  number  of  workers  so  procured  shall  not  exceed 
seven-tenths  of  the  number  of  striking  employees  covered  by  the 
member's  regular  assessment  for  the  current  quarter  .  .  ." 

Of  course  the  member  understands  that  for  this  protection  he 
must  be  willing  to  bind  himself  to  obey  certain  rules  of  the  associa- 
tion. The  N.M.T.A.  is  ready,  willing,  and  able  to  swing  into  action 
on  behalf  of  a  stricken  member,  but  he  must  agree  to  let  them  run 
the  show.  Article  XIII,  Sec.  I,  makes  that  clear:  "In  the  conduct  of 
labor  disputes  members  must  proceed  in  the  manner  which  the 
Constitution  and  By-Laws  prescribe,  failing  in  which  they  shall 
forfeit  all  right  to  the  financial  or  moral  support  of  the  Associa- 
tion .  .  ." 

Now  what  happens  if  a  member  calls  upon  the  association  to 
help  fight  a  strike,  and  then  either  because  he  is  lily-livered  and 
can't  stand  seeing  his  workers  attacked  by  the  guards,  or  because 
he  has  come  round  to  seeing  that  the  strikers  have  just  grievances, 
or  because  the  strike  is  making  him  suffer  heavy  business  losses,  he 
decides  to  settle  the  strike?  What  happens?  Can  he  meet  with  the 
men  and  end  the  dispute  ?  Not  on  your  life.  It's  not  up  to  him.  It's 
for  the  N.M.T.A.  to  decide  if,  when,  and  how  a  strike  in  this  mem- 
ber plant  shall  be  terminated:  "Article  XIII,  Sec.  7,  Penalty  for 
Settling  Without  Approval  of  Administrative  Council.  If,  without  the 
consent  of  the  Administrative  Council,  a  member  shall  settle  a 
difference  or  strike,  the  defense  of  which  has  been  assumed  by  the 
Association,  such  member  shall  repay  to  the  Association  all  the 


EMPLOYERS  ORGANIZE  121 

moneys  which  the  Association  may  have  expended  on  account  of 
having  assumed  defense  of  such  difference  or  strike,  and  shall  also 
be  liable  to  suspension  or  expulsion." 

Does  this  seem  a  bit  high  handed?  It  isn't.  It's  a  smart  tactic.  In 
fighting  a  war  it's  always  best  to  have  a  unified  command.  The 
N.M.T.A.  knows  that  in  fighting  for  the  employers  against  the 
workers,  the  safest  and  strongest  procedure  is  a  united  front  —  col- 
lective action  on  the  part  of  the  employers.  The  workers  have  also 
learned  that  collective  action  is  best.  That's  why  they  organize  into 
unions.  But  what  the  N.M.T.A.  wants  for  its  own  side,  it  is  not  at 
all  willing  to  grant  to  the  other  side.  Mr.  Sayre  was  very  reluctant 
to  admit  this,  but  judge  for  yourself: 

SENATOR  THOMAS.  So  that  you  have  an  organization  which 
has  all  the  possibilities  of  collective  action  on  the  part  of  the 
employers  ? 

MR.  SAYRE.  Yes;  I  presume  that  is  correct,  in  the  preservation 
of  the  open  shop. 

SENATOR  THOMAS.  So  that  you  have  certain  machinery  set 
up  that  you  can  bring  unity  of  stand,  unity  of  action,  unity 
of  opinion  about  certain  definite  things? 

MR.  SAYRE.  Yes;  for  the  principle  of  the  open  shop  that  we 
stand  for. 

SENATOR  THOMAS.  If  you  take  the  words  of  your  constitution, 
do  not  they  mean  this,  that  "We  want  collective  action  for 
ourselves  and  we  want  to  forestall  collective  action  on  the 
part  of  the  employees?" 

MR.  SAYRE.  Well,  that  is  not  the  policy  of  the  association. 
We  do  not  do  that. 

SENATOR  THOMAS.  In  spite  of  what  it  says  here? 

MR.  SAYRE.  That  is  right. 

SENATOR  THOMAS.  I  am  right  in  implying  that  from  the 
words,  am  I  not? 


122  THE  LABOR  SPY  RACKET 

MR.  SAYRE.  Well,  that  would  simply  be  an  opinion.  I  do  not 
think  I  would  care  to  express  an  opinion  on  it. 

SENATOR  THOMAS.  Well,  has  it  not  worked  that  way? 

MR.  SAYRE.  No;  it  has  not  worked  that  way. 

SENATOR  THOMAS.  Haven't  you  been  more  interested  in 
keeping  the  employers  on  a  collective-action  basis  than  seeing 
that  the  employees  get  on  a  collective-action  basis? 

MR.  SAYRE.  Yes;  in  that  respect  that  is  correct. 

What  infinite  patience  was  required  to  get  these  witnesses  to 
give  to  words  their  obvious  meaning!  Mr.  Sayre,  like  the  dick 
agency  officials  and  labor-relations  directors  of  the  big  corpora- 
tions, displayed  amazing  speed  in  spotting  what  labor  was  doing 
that  his  side  didn't  like,  but  he  could  seldom  quite  make  the  grade 
in  discovering  what  his  side  was  doing  that  labor  didn't  like.  He 
didn't  like  to  be  helped  either.  And  he  certainly  didn't  enjoy  Senator 
La  Follette's  and  Senator  Thomas's  nasty  habit  of  asking  questions 
that  would  clarify  some  of  his  pretty  speeches. 

For  example,  Mr.  Sayre  proclaims,  "...  I  think,  generally 
speaking,  the  employers  throughout  the  country  are  willing  at  any 
time  to  deal  with  their  employees,  either  individually  or  collec- 
tively. What  many  of  them  object  to  is  to  dealing  with  outside 
representatives." 

Now  see  what  the  questioning  brought  out  in  regard  to  that 
beautiful  sentiment: 

SENATOR  THOMAS.  What  do  you  mean  by  outside  representa- 
tives ? 

MR.  SAYRE.  Well,  I  mean  business  agents  of  a  union  and  men 
of  that  description,  that  are  not  employed  by  the  company. 

SENATOR  THOMAS.  Would  not  your  organization  be  an  outside 
agency  from  the  employees'  standpoint? 

MR.  SAYRE.  I  presume  that  is  correct. 

SENATOR  THOMAS.  What  if  an  employee  organization  should 
be  set  up  and  they  should  make  the  charge  that  they  are  against 


EMPLOYERS  ORGANIZE  123 

the  closed  shop  theory  in  regard  to  the  employers;  would  that 
not  put  your  organization  right  out  of  existence? 

MR.  SAYRE.  It  might,  if  the  employers  agreed  to  that. 

Commissioner  Sayre  got  into  other  difficulties.  Not  only  did  he 
have  to  admit  that  his  organization  was  just  as  much  an  "outside 
agency"  as  the  business  agents  of  a  union  were,  but  he  had  to 
admit  further  that  the  N.M.T.A.  was  opposed  to  its  members 
making  collective  bargaining  agreements.  He  had  been  stoutly 
maintaining  that  the  association  was  not  opposed  to  its  members 
employing  union  workers,  but  that  it  was  opposed  to  its  members 
signing  closed  shop  agreements  with  unions.  Under  Senator  La 
Follette's  questioning  he  had  to  concede  that  the  N.M.T.A.  was 
opposed  to  its  members  signing  even  collective  bargaining  agree- 
ments. This  admission  came  hard,  but  it  came. 

SENATOR  LA  FOLLETTE.  In  other  words,  when  you  say  you 
are  opposed  to  a  closed  shop,  what  you  really  mean,  if  I  under- 
stand you,  is  that  you  are  opposed  to  any  collective  bargaining 
whereby  the  majority  of  the  employees  are  designated  as  rep- 
resentatives of  all  of  the  employees  for  the  purpose  of  signing 
an  agreement,  which  affects  the  working  conditions,  the  hours, 
and  the  wages  of  all  the  employees  in  the  plant;  is  that  not  a 
fair  statement? 

MR.  SAYRE.  Well,  we  are  opposed  — 

SENATOR  LA  FOLLETTE.  (interrupting)  No;  I  say,  is  that  not  a 
fair  statement  ? 

MR.  SAYRE.  I  do  not  want  to  make  a  mistake  on  it. 

SENATOR  LA  FOLLETTE.  I  do  not  want  you  to  make  any  mis- 
take. 

MR.  SAYRE.  That  is  the  point.  I  want  to  be  perfectly  honest 
in  the  thing.  As  I  said,  we  are  opposed  to  the  closed  shop, 
Senator. 

SENATOR  LA  FOLLETTE.  You  have  said  that  a  good  many 
times  and  I  understand  all  about  that,  but  I  understood  from 
your  testimony  that  what  you  regarded  as  a  closed  shop  was 


i24  THE  LABOR  SPY  RACKET 

an  agreement  entered  into  between  the  employees,  that  no 
one  in  that  shop  could  be  employed  who  did  not  belong  to  a 
particular  union.  Is  that  correct? 

MR.  SAYRE.  That  is  correct. 

SENATOR  LA  FOLLETTE.  All  right.  Now  I  am  anxious  to  get 
your  honest,  straight-forward  opinion  ...  of  a  different 
situation,  not  a  closed  shop  in  the  sense  that  all  employees 
have  to  belong  to  a  particular  union,  but  a  shop  in  which  the 
employer  recognizes  the  right  of  a  majority  of  his  employees  to 
represent  all  of  the  employees  in  the  plant,  regardless  of 
whether  they  belong  to  a  union  or  not,  for  the  purpose  of 
entering  into  a  contractual  relation  between  the  employees 
and  the  employer  affecting  hours,  wages,  and  working  con- 
ditions, and  other  things  of  interest  to  the  employees. 

MR.  SAYRE.  Well,  we  would  probably  say  to  that  company 
that  we  felt  that  such  an  agreement  was  not  justice  to  the  mi- 
nority, and  would  suggest  that  when  the  time  came  for  renew- 
ing the  agreement  again  that  he  should  take  that  into  con- 
sideration. I  do  not  think,  I  am  quite  sure,  the  association 
would  expel  a  company  for  that. 

SENATOR  LA  FOLLETTE.  .  .  .  Do  you  know  of  any  member 
of  your  association  that  has  the  kind  of  collective  bargaining 
agreement  that  I  described  in  my  previous  question  ? 

MR.  SAYRE.  I  do  not  recall  offhand. 

SENATOR  LA  FOLLETTE.  You  would  be  very  disturbed,  would 
you  not,  if  one  or  several  members  of  your  association  began 
to  enter  into  the  kind  of  agreements  that  I  have  suggested  ? 

MR.  SAYRE.  Yes;  I  would. 

SENATOR  LA  FOLLETTE.  And  you  would  bring  it  to  the  at- 
tention of  the  administrative  executive  council? 

MR.  SAYRE:  Yes;  I  would;  yes,  sir. 

SENATOR  LA  FOLLETTE.  Do  you  not  think  the  executive  coun- 
cil would  be  disturbed  about  it  ? 

MR.  SAYRE.  I  think  it  would. 


EMPLOYERS  ORGANIZE  125 

SENATOR  LA  FOLLETTE.  All  right.  I  think  we  understand 
each  other,  Mr.  Sayre. 

In  the  record  there  is  an  example  of  just  such  a  case.  Only  Mr. 
Sayre  did  not  need  to  refer  the  matter  to  the  administrative  ex- 
ecutive council.  He  prevented  the  signing  of  the  agreement  between 
the  N.M.T.A.  member  and  the  union  by  smashing  the  union. 
Follow  the  sequence  of  steps: 

On  April  25,  1934,  the  workers  in  the  Morse  Twist  Drill  &  Ma- 
chine Co.  of  New  Bedford,  Mass,  (member  of  the  N.M.T.A.)  held 
an  election  under  the  auspices  of  the  National  Labor  Relations 
Board,  to  determine  who  should  represent  them  in  collective  bar- 
gaining with  the  company. 

On  April  27,  1934,  the  result  of  the  election  was  communicated 
to  the  company  by  the  N.L.R.B.: 

April  27,  1934 
MORSE  TWIST  DRILL  &  MACHINE  Co., 

New  Bedford,  Mass. 

Gentlemen:  The  results  of  the  election  held  by  this  Board  for 
the  employees  of  the  Morse  Twist  Drill  &  Machine  Co.,  held 
in  New  Bedford  on  April  25,  1934,  for  the  purpose  of  deter- 
mining who  shall  represent  the  employees  in  collective  bar- 
gaining are  as  follows: 

American  Federation  of  Labor  representatives  ....     272 

Local  shop  committee 10 

Miscellaneous 2 

Total  ballots  cast 284 

We  enclose  a  copy  of  the  President's  Executive  order  of 
February  I,  1934,  as  amended  of  February  23,  1934. 
Yours  very  truly, 

S.  C.  BARTLETT,  JR., 
Executive  Secretary. 

The  National  Labor  Relations  Board  officials  carried  out  their 
instructions  according  to  law.  They  held  and  properly  supervised 


126  THE  LABOR  SPY  RACKET 

an  election  in  the  Morse  Twist  Drill  Co.  plant.  They  notified  the 
company  of  the  result.  The  next  step  should  have  been  the  signing 
of  a  collective  bargaining  agreement  between  the  company  and 
the  union  which  had  been  elected  by  the  workers  to  represent  them. 

But  there  is  more  than  one  way  of  skinning  a  cat. 

All  was  not  lost,  not  by  a  long  shot.  The  N.M.T.A.  could  fix 
things  up.  No  one  can  sign  an  agreement  with  a  union  that  doesn't 
exist.  So  — 

On  April  28,  1934,  application  for  a  post  office  box  in  New 
Bedford  was  filed  by  Mr.  George  Lichtenberger.  He  was  assigned 
Box  No.  152. 

Mr.  George  Lichtenberger  was  a  spy  —  Operative  187  —  in  the 
employ  of  the  N.M.T.A.  He  was  sent  in  with  orders  to  smash 
the  union.  He  succeeded,  according  to  the  affidavit  of  a  man  who 
was  in  a  position  to  know,  Ferdinand  Sylvia,  A.  F.  of  L.  organizer: 

Both  the  Revere  Brass  and  the  Morse  'Twist  Drill  unions  with 
which  Lichtenberger  was  identified  have  disintegrated  ...  I 
believe  that  in  both  these  cases  the  real  destructive  influence 
was  the  action  and  attitude  of  Lichtenberger,  particularly  in 
the  Morse  Twist  Drill  where  I  had  organized  127  members 
with  full  initiation  fees  and  with  the  prospects  of  a  potential 
organization  of  more  than  500  members  and  where  we  had 
immediate  success  in  raising  wages  and  in  securing  recognition 
for  purposes  of  collective  bargaining  through  a  national  labor 
board  election.  Because  of  his  influential  position  in  the  local 
and  as  a  delegate  to  the  New  Bedford  Central  Labor  Union, 
Lichtenberger  was  able  to  demoralize  the  members  and  the 
prospective  members  of  the  Morse  Twist  Drill  Local  by  dis- 
crediting the  organizers  and  by  his  efforts  within  the  or- 
ganization. 

FERDINAND  SYLVIA. 

Neat  work,  wasn't  it?  The  N.M.T.A.  officials  were  not  boasting 
when  they  advised  their  own  and  prospective  members  that  the 
association's  "Private  Detective  Service"  offered  many  advan- 


EMPLOYERS  ORGANIZE  127 

tages  over  the  industrial  service  of  the  ordinary  spy  agencies. 
According  to  Mr.  E.  C.  Davison,  Mayor  of  Alexandria,  and  secre- 
tary-treasurer of  the  International  Association  of  Machinists,  the 
N.M.T.A.  could  be  proud  of  the  activities  of  its  undercover  men: 

MR.  DAVISON.  .  .  .  In  1901  they  became  very  active  and 

began  the  process  of  placing  in  our  organization  undercover 

men,  stool-pigeons,  for  the  purpose  of  framing  the  officials 

of  the  organization,  both  local  and  international  —  our  trou- 

ibles  were  continuous. 

SENATOR  LA  FOLLETTE.  What  do  you  mean  by  "framing"? 

MR.  DAVISON.  By  getting  them  into  positions  that  are,  I 
would  say,  unbearable;  destroying  their  homes,  if  possible,  by 
anonymous  letters,  many  of  which  I  have  myself  received  in 
my  earlier  days,  writing  to  our  wives  that  we  were  familiar 
with  other  women,  writing  letters  signing  the  names  of  women 
that  would  be  sent  to  our  homes,  addressed  to  us,  knowing  full 
well  that  most  of  our  wives  take  care  of  our  mail  at  home  .  .  . 

There's  a  tactic  which  even  the  dick  agencies  wouldn't  stoop  to. 

The  N.M.T.A.  spies  know  the  advantage  of  becoming  officials 
in  the  union.  When  James  Matles,  grand  lodge  representative  of 
the  International  Association  of  Machinists,  was  shown  a  list  of 
the  undercover  operatives  of  the  N.M.T.A.  and  the  places  where 
they  had  worked,  he  recognized  some  of  them  as  important  union 
officials:  "I  see  the  name  of  Ernest  Goetz,  Operator  249,  Otis 
Elevator,  Yonkers,  Worthington  Pump,  Ford  Instrument  Co.,  at 
which  company  he  is  employed  now;  he  is  a  member  of  Lodge  295, 
Long  Island  City;  he  holds  the  office  of  trustee  at  the  present  time 
...  I  see  the  name  further  on  of  Arthur  Brook,  Operator  433, 
Silver  &  Pewter  Manufacturers  Association,  New  York,  and  later 
as  general  operator.  He  is  at  present  a  member  of  the  executive 
board  of  Lodge  416  in  Brooklyn  ...  I  see  here  also  one  other 
important  man.  His  name  is  A.  W.  Allten,  Operative  479,  the 
Wright  Aeronautical  Co.,  Paterson,  N.  J.  This  man  is  holding  office 
now  as  secretary  of  the  lodge  and  has  all  the  records  of  every  sinele 


128  THE  LABOR  SPY  RACKET 

member  working  in  Wright's.  He  is  president  of  the  State  con- 
ference of  the  International  Association  of  Machinists,  a  conference 
representing  12  or  14  lodges  in  that  state." 

Members  of  the  N.M.T.A.  are  assured  that  their  every  request 
for  aid  in  case  of  "trouble'*  (union  activity)  will  be  given  prompt 
consideration.  In  April  1935  the  Sunbeam  Electric  Co.  of  Evans- 
ville  needed  help.  The  reason  is  given  in  a  letter  from  the  secretary 
of  the  St.  Louis  Branch  of  the  association  to  the  national  secretary: 

...  Of  their  [Sunbeam  Electric  Co.]  employees  who  belong 
to  this  federal  union,  three  are  particularly  active  and  per- 
nicious. The  company  would  like  to  get  rid  of  these  three 
men  and  if  you  can  suggest  any  way  that  they  can  accomplish 
this  without  laying  themselves  liable  to  a  charge  before  the  Regional 
Labor  Board,  they  would  appreciate  it  very  much.  All  three 
of  them  are  very  careful  to  do  their  work  in  such  a  way  that  it 
will  not  be  possible  to  discharge  them  on  those  grounds  and 
their  union  activities  are  carried  on  outside  the  plant  and  in 
union  meetings  .  .  .  Mr.  Schroeder  believes  that  the  interests 
of  the  firm  require  their  immediate  dismissal.  How  can  it  be 
done? 

Did  this  employers'  association,  run  by  the  high-minded  Mr. 
Sayre,  refuse  indignantly  to  assist  the  Sunbeam  Electric  Co.  vio- 
late the  law?  It  did  not.  Did  the  N.M.T.A.  write  to  the  Sunbeam 
Electric  Co.  that  its  employees  had  a  perfect  right  to  do  what  they 
were  doing?  It  did  not.  It  came  to  the  aid  of  its  stricken  member  — 
Operative  116  was  assigned  to  the  case. 

The  N.M.T.A.  is  prepared  to  give  to  its  members  strike-breaking 
and  "guard"  service  as  well  as  spy  service.  In  1936  it  had  a  "de- 
fense fund"  of  over  $200,000  to  use  for  strike-breaking  purposes. 
(Incidentally,  it  paid  no  taxes  on  this  war  chest,  because  it  is  a  "vol- 
untary association.")  Any  outfit  that  is  in  the  strike-breaking 
business  is  of  great  interest  to  the  munitions  firms.  Mr.  Ailes, 
vice-president  of  the  Lake  Erie  Chemical  Co.  recognized  that  fact. 
On  May  28,  1936,  he  wrote  to  one  of  his  agents: 


EMPLOYERS  ORGANIZE  129 

Dear  Northcott:  You  will  recall  that  I  wrote  to  you  several 
times  about  the  National  Metal  Trades  Association  with 
headquarters  in  Chicago,  tfbis  outfit  is  a  great  potential  source  of 
business,  and  I  think  we  have  overlooked  a  bet  in  not  getting 
better  acquainted  with  them  .  .  . 

They  have  a  membership  consisting  of  the  most  prominent 
metal-working  concerns  in  the  U.  S. 

I  did  not  know  until  recently  that  this  concern  furnished 
guards ,  strike-breakers^  and  tbe  like  for  industrial  concerns  be- 
longing to  tbeir  association.  However,  they  do  so,  and  dictate 
the  defensive  sources  or  materials  that  the  members  should 
buy  .  .  . 

Mr.  Ailes  was  not  a  moment  too  soon.  For  at  the  very  moment  he 
was  writing  his  letter,  a  strike  was  in  progress  at  the  Black  &  Decker 
Electric  Co.  of  Kent,  Ohio.  This  was  a  member  firm  of  the  N.M.T.A. 
and  Mr.  Ailes  succeeded  in  "getting  better  acquainted"  just  in  the 
nick  of  time.  On  June  18,  the  association's  "guards"  put  into  use 
the  Lake  Erie  Chemical  Co.'s  products.  Here  is  the  story  from  the 
sworn  testimony  of  Mr.  C.  A.  Gadd,  business  representative  for 
the  International  Association  of  Machinists: 

SENATOR  LA  FOLLETTE.  State  the  circumstances  that  led  to 
the  violence. 

MR.  GADD.  Two  trucks  drove  up  there  at  6  o'clock  in  the 
morning  and  crashed  through  the  gate,  men  jumped  out  of 
them  with  sawed-off  shotguns  and  tear  gas  guns. 

SENATOR  LA  FOLLETTE.  Approximately  how  many  men 
were  in  the  trucks  ?  Do  you  remember  ? 

MR.  GADD.  Well  there  were  forty-some.  I  was  under  the  im- 
pression there  were  forty  nine  of  them  altogether.  They  started 
shooting  tear  gas  and  shooting  with  the  shotguns.  They  had 
some  of  the  pickets  that  were  suffering  from  gas  taken  to  the 
hospital.  One  picket  was  shot  in  the  right  leg,  gassed,  and  some 
of  the  other  pickets  were  slightly  wounded.  One,  by  the  name 
of  Gray,  was  shot  in  the  face  with  some  buckshot  .  .  . 


130  THE  LABOR  SPY  RACKET 

SENATOR  LA  FOLLETTE.  Were  any  women  hurt? 

MR.  GADD.  Yes,  sir.  There  was  a  Mrs.  Broffman  .  .  .  She 
had  a  gas  shell  explode  right  at  her  feet.  She  is  still  suffering 
from  the  effects  of  it  [7  months  after  the  shooting  I-AUTHOR]  .  .  . 

SENATOR  LA  FOLLETTE.  Were  there  munitions  found  in  the 
plant? 

MR.  GADD.  Yes,  sir. 

SENATOR  LA  FOLLETTE.  What  kind  of  munitions? 

MR.  GADD.  There  were  five  sawed-off  shotguns,  five  tear  gas 
guns,  long  range  guns,  one  full  case  and  one  part  of  a  case  of 
long  range  tear  gas  shells;  there  was  quite  a  quantity  of  small 
arms  ammunition,  shotgun  shells,  and  there  were  about  a 
bushel  basket  full  of  revolvers  and  automatic  pistols. 

SENATOR  LA  FOLLETTE.  In  the  course  of  your  negotiations 
for  the  agreement  which  was  entered  into  subsequent  to  the 
removal  of  the  guards,  did  you  have  any  discussion  with  Mr. 
Lamb  about  the  hiring  of  the  guards  ? 

MR.  GADD.  After  the  agreement  was  signed  he  said  he  did  not 
hire  any  guards,  that  they  turned  the  settlement  of  the  strike 
over  to  the  agency.  He  did  not  name  the  agency  at  that  time. 

SENATOR  LA  FOLLETTE.  It  has  been  developed  in  the  testi- 
mony that  it  was  the  National  Metal  Trades  Association. 

MR.  GADD.  That  is  right. 

Though  Mr.  Sayre  explained  at  the  beginning  of  his  testimony 
that  the  purpose  of  the  association  was  "to  establish  harmonious 
relations"  between  employers  and  employees,  the  complete  record 
in  no  sense  bears  him  out.  As  a  matter  of  fact,  when  N.M.T.A. 
officials  met  with  any  employer  who  did  try  to  establish  peaceful 
relations  with  unionized  workers,  they  did  everything  they  could 
to  change  his  point  of  view.  Two  cases  from  the  record  illustrate 
this  point. 

The  first  concerns  Mr.  George  E.  Deming,  vice  president  of  the 


EMPLOYERS  ORGANIZE  131 

Philco  Radio  Co.  of  Philadelphia.  Mr.  Deming,  it  appears,  did  not 
stop  with  making  pretty  speeches  about  workers  having  the  right 
to  belong  to  unions  of  their  own  choosing,  but  he  actually  believed 
it  —  and  his  company  signed  an  agreement  with  the  union.  That, 
in  itself,  would  have  made  him  an  object  of  scorn  to  N.M.T.A. 
officials.  But  that  wasn't  all.  Mr.  Deming  happened  to  be  the  em- 
ployer-member of  the  mayor's  labor  committee  and  dared  to  stick 
to  the  position  that  other  employers  should  sign  agreements  with 
the  unions.  That  was  more  than  Mr.  L.  A.  Stringham,  head  of  the 
N.  Y.  branch  office  of  the  N.M.T.A.,  could  stand.  He  was  in- 
dignant, and  on  March  8,  1936,  wrote  to  Commissioner  Sayre  for 
advice.  Part  of  that  letter  reads:  "Deming  is  the  best  thing  the 
A.  F.  of  L.  has  in  Philadelphia,  and  his  constant  agitation  in  favor 
of  the  A.  F.  of  L.  is  adding  strength  to  the  organized  labor  move- 
ment. 

"  This  man  should  be  broken  down.  Can  you  suggest  anything  that 
we  can  do  to  offset  his  activities?'1 

Four  days  later  came  the  Commissioner's  answer,  short  and  to 
the  point: 

Dear  Mr.  Stringham :  The  next  time  you  see  Mr.  Keller  I 
would  suggest  that  you  give  him  the  benefit  of  your  opinion 
regarding  Mr.  Deming's  attitude  on  labor  problems. 

That  is  Mr.  Sayre's  advice  in  answer  to  Stringham's  request  for  a 
method  of  "breaking  down"  Mr.  Deming,  the  employer-friend  of 
labor.  It  doesn't  make  sense  until  you  understand  that  one  of 
Philco's  chief  customers  was  the  Chrysler  Corporation,  that  Walter 
Chrysler  was  a  stockholder  in  the  Philco  Co.,  and  that  Mr.  Keller 
was  the  President  of  the  Chrysler  Corporation. 

Get  it?  Mr.  Deming,  vice  president  of  the  Philco  Co.,  dared  to 
believe  that  labor  had  the  right  to  organize  and  bargain  collectively. 
He  was  to  be  "broken  down"  by  having  pressure  brought  to  bear 
on  him  through  Mr.  Keller  of  Chrysler,  one  of  his  biggest  customers. 

Commissioner  Sayre  evidently  knew  all  the  tricks  of  the  game, 
didn't  he? 


132  THE  LABOR  SPY  RACKET 

The  second  case  is  similar.  A  solicitor  for  an  employers'  open  shop 
organization  in  Cleveland,  tried  to  enroll  Mr.  Frank  W.  Caldwell, 
a  dealer  in  Dodge  cars  there.  Imagine  his  surprise  and  disgust  at 
learning  from  Mr.  Caldwell  that  he  believed  in  collective  bargain- 
ing, and  that  he  had  signed  an  agreement  with  his  employees' 
union!  The  N.M.T.A.  learned  about  Mr.  Caldwell.  Though  it 
wasn't  any  of  their  business  since  Mr.  Caldwell  was  not  eligible  for 
membership  in  the  N.M.T.A.;  nevertheless  Mr.  Sayre  evidently 
thought  Mr.  CaldwelPs  condition  was  serious,  and  he  proposed  a 
remedy.  He  took  the  trouble  to  write  a  letter  to  Mr.  Keller  telling 
him  about  the  attitude  toward  labor  of  Mr.  Caldwell,  the  Dodge 
dealer  who  sold  cars  made  by  the  Chrysler  Corporation.  It  was  indeed 
fortunate  for  the  Chrysler  Corporation  that  Commissioner  Sayre 
didn't  spot  many  more  pro-labor  employers  with  Chrysler  connec- 
tions, else  President  Keller  would  have  had  a  full-time  job  just 
bringing  pressure  to  bear  where  Sayre  thought  it  was  needed. 

If  a  small  Dodge  dealer  could  arouse  Commissioner  Sayre  so 
much,  just  imagine  how  his  heart  must  have  sunk,  when  he  learned 
that  Gerard  Swope,  Chairman  of  the  Board  of  the  great  General 
Electric  Company,  was  making  eyes  at  unions!  The  horrible  news 
came  from  the  faithful  Stringham  in  a  report  on  an  interview  with 
Mr.  Hinds  of  the  Crouse  Hinds  Company,  makers  of  electric 
signals. 

Mr.  Hinds  said  that  Mr.  Crouse  had  evidently  fallen  for  some 
of  the  talk  he  had  heard  coming  from  Girard  Swope,  of  the  Gen- 
eral Electric  Company,  who  was  attempting  to  eliminate  from 
industry  the  National  Association  of  Manufacturers,  the  Nation- 
al Founders  Association,  and  N.M.T.A.  [that  must  have  taken 
Sayre's  breath  away!-AuTHOR]  That  at  a  meeting  in  New 
York  of  the  N.E.M.A.  a  couple  of  weeks  ago,  Swope  attacked 
the  above  three  associations;  said  they  were  out  of  the  picture 
now,  and  could  not  do  anything  since  j-A  [of  the  National  In- 
dustrial Recovery  Act]  and  the  Labor  Boards  were  instituted; 
that  there  was  no  need  of  them  any  more;  that  every  one  would 


EMPLOYERS  ORGANIZE  133 

have  to  go  along  with  the  President  from  now  on,  and  follow 
out  his  policies,  etc.  Manufacturers  and  members  of  the 
N.E.M.A.  who  were  also  in  the  three  associations  referred  to, 
would  not  have  to  pay  any  more  dues,  but  go  along  with  the 
President  and  save  their  money. 

Mr.  Hinds  agrees  that  Swope  is  a  dangerous  man  for  industry; 
that  his  wife,  a  former  pal  of  Jane  Adams  of  the  Hull  House,  is 
active  with  him  in  their  parlor  pink  activities. 

Later  on  in  the  evening,  conferred  with  our  Syracuse  cor- 
respondent and  he  informed  me  that  he  had  just  received  a 
letter  from  Schenectady  which  advised  him  of  a  meeting  .  .  . 
held  in  the  General  Electric  office  building,  attended  by  the 
district  officers  of  the  four  lodges  of  the  International  Associa- 
tion of  Machinists,  Schenectady,  and  was  presided  over  by 
Girard  Swope  and  George  Bowen  of  the  I. A.M. 

Here  again  the  record  is  clear.  Mr.  Swope's  wife  was  a  pal  of 
Jane  Adams  —  mark  him  as  "a  parlor  pink";  Mr.  Swope  believed 
in  negotiating  with  trade  unions  —  mark  him  as  "a  dangerous  man 
for  industry."  We  don't  know  whether  Commissioner  Sayre  tried 
his  usual  tactic  of  communicating  with  President  Keller  of  the 
Chrysler  Corporation  in  this  instance;  we  do  know  from  another 
letter  in  the  record  that  he  expected  to  "make  good  use  of  the  in- 
formation" that  Stringham  had  given  him. 

To  what  fantastic  lengths  the  imagination  of  an  employers' 
group  runs  when  it  meets  an  industrialist  who  deals  with  the 
union  of  his  employees,  is  beautifully  illustrated  from  another 
Stringham-to-Sayre  letter.  It  is  dated  January  2,  1935,  and  part  of 
it  reads: 

.  .  .  Counsel  for  the  manufacturers  and  associations,  during 
their  deliberations,  woke  to  the  fact  that  there  was  a  leak 
among  their  own  group  and  through  an  investigation  it  is  said 
that  Gerard  Swope  was  not  only  informant  for  the  other  side  of 
the  fence  but  was  keeping  them  thoroughly  advised  and  alive  to 
everything  that  went  on  in  the  manufacturers*  meetings. 


134  THE  LABOR  SPY  RACKET 

A  pretty  spectacle!  The  major  officials  of  one  of  the  leading  em- 
ployers' associations  in  the  U.  S.  labelling  Gerard  Swope,  head  of 
the  General  Electric  Co.,  an  informant!  Perhaps  the  explanation 
lies  in  the  fact  that  they  themselves  are  so  used  to  the  employment 
of  spies  that  they  suspect  everybody  else,  particularly  an  em- 
ployer who  so  far  forgets  his  position  as  to  respect  the  rights  of  his 
employees  to  bargain  collectively. 

Another  organization  of  employers  which  deserves  attention  is 
the  National  Association  of  Manufacturers,  which  one  of  its  officers 
has  described  as  "the  most  powerful  body  of  business  men  which 
has  ever  been  organized  in  any  land,  or  in  any  age."  The  N.A.M.  has 
in  the  U.  S.  over  five  thousand  active  and  associate  members;  it  has 
as  affiliates  over  thirty  state  and  several  hundred  local  manufactur- 
ers' organizations,  as  well  as  many  national  trade  associations. 

Like  the  N.M.T.A.,  it  states,  as  one  of  its  purposes  "the  better- 
ment of  the  relations  between  employer  and  employee,"  but  its 
program  for  fulfilling  that  aim  is  quite  different.  It  is  not,  directly, 
a  spy  and  strike-breaking  agency.  It  concerns  itself  instead,  with 
the  relations  between  business  and  government,  and  centers  much 
of  its  attention  on  legislation  —  opposing  those  measures  which 
threaten  the  power  of  business,  and  supporting  (often  helping  to 
initiate)  those  measures  which  favor  business.  It  concerns  itself, 
too,  with  the  shaping  of  public  opinion  in  regard  to  industry. 

For  that  job  it  is  extremely  well  equipped.  It  has  a  treasury  large 
enough  to  enable  its  Public  Relations  Committee  to  make  extensive 
use  of  every  propaganda  medium  in  the  country.  At  the  annual 
convention  of  the  N.A.M.  on  December  8,  1936,  the  chairman  of 
the  committee,  Mr.  Harry  A.  Bullis,  gave  the  following  report  of 
the  widespread  activities  of  his  committee  in  carrying  industry's 
message  to  every  American  home. 

<Tbe  Press 
Industrial  Press  Service  —  reaches  5300  weekly  newspapers 

every  week. 
Weekly  cartoon  service  —  sent  to  2000  weekly  newspapers. 


EMPLOYERS  ORGANIZE  135 

"Uncle  Abner  Says"  —  comic  cartoon  appearing  in  309  daily 
papers  with  a  total  circulation  of  2,000,000  readers. 

"You  and  Your  Nation's  Affairs"  —daily  articles  by  well- 
known  economists  appearing  in  260  newspapers  with  a  total 
circulation  of  over  4,500,000. 

Factual  bulletin  —  monthly  exposition  of  industry's  viewpoint 
sent  to  every  newspaper  editor  in  the  country. 

For  foreign-born  citizens  —  weekly  press  service,  translated 
into  German,  Hungarian,  Polish,  and  Italian,  printed  in 
papers  with  a  total  circulation  of  almost  2,500,000. 

Nation-wide  advertising  —  6  full  page  ads  about  the  "Ameri- 
can System,"  of  which  over  500  newspapers  have  carried  one 
or  more. 

The  Radio 

"The  American  Family  Robinson"  —program  heard  from 
coast  to  coast  over  222  radio  stations  once  a  week,  and  over 
176  stations  twice  a  week. 

Foreign  language  —  1 188  programs  in  6  languages  over  79  radio 
stations. 

The  Movies 

Two  lo-minute  films  for  general  distribution,  seen  by  over 
2,000,000  people. 

Public  Meetings 

70  meetings  featuring  8  professional  speakers. 

Employee  Information  Service 

Leaflets  —  a  series  of  25  distributed  to  over  1 1,000,000  workers. 
Posters  —  over  300,000  of  a  series  of  24  for  bulletin  boards  in 

plants  throughout  the  country. 
Films  —  10  sound  slide  films  for  showing  in  plants. 

Outdoor  advertising 

60,000  billboard  ads  scheduled  for  1937. 


136  THE  LABOR  SPY  RACKET 

Pamphlets 

"You  and  Industry  Library"  —  over  1,000,000  copies  of  a 
series  of  seven  pamphlets  distributed  to  libraries,  colleges, 
business  men,  lawyers,  and  educators. 

Mr.  Bullis  admitted  that  when  he  himself  contemplated  the  scope 
of  the  N.A.M.  public  relations  program,  it  took  his  breath  away. 
He  told  the  convention,  "I  am  always  amazed  at  its  completeness 
and  the  way  in  which  it  reaches  into  every  section  of  the  country 
and  all  strata  of  society." 

Of  the  truth  of  that  statement  there  can  be  no  doubt. 

Both  the  N.M.T.A.  and  the  N.A.M.  are  big  well  known  employ- 
ers' organizations  with  a  fairly  open  membership.  There  is  another 
type  of  combination  of  employers  which  is  small,  more  or  less 
secretive,  with  restricted  membership.  An  outstanding  example  of 
such  a  group  is  the  "special  conference  committee,"  which  meets 
once  a  month  in  the  office  of  its  secretary,  Mr.  E.  S.  Cowdrick,  on 
the  24th  floor  of  Radio  City.  The  personnel  men  of  a  group  of  select 
important  corporations  make  up  this  committee.  The  corporations 
are  world-famous:  General  Motors,  Standard  Oil  Co.  of  New  Jersey, 
U.  S.  Rubber  Co.,  U.  S.  Steel,  Bethlehem  Steel,  International 
Harvester,  A.  T.  &  T.,  Goodyear  Tire  &  Rubber,  Irving  Trust  Co., 
Du  Pont  Co.,  General  Electric,  and  Westinghouse.  No  more.  Each 
corporation,  if  not  the  greatest  in  its  field,  is  certainly  one  of  the 
greatest. 

Several  members  of  the  group  were  on  the  stand  before  the  La 
Follette  committee.  They  testified  that  the  principal  order  of  busi- 
ness at  the  monthly  meetings  was  a  presentation  by  each  member 
of  a  resume  of  business  conditions  of  his  company  and  of  the  labor 
situation;  legislation  such  as  J-A  of  N.I.R.A.  and  the  Social  Security 
Act  was  also  discussed.  Minutes  of  each  meeting  were  kept  and  sent 
to  the  members  of  the  committee,  but  the  three  General  Motors 
witnesses  who  testified  said  that  they  had  destroyed  their  copies. 
The  questioning  did  bring  out,  however,  that  this  conference  com- 
mittee, while  presumably  merely  a  discussion  group,  became,  in 


EMPLOYERS  ORGANIZE  137 

effect,  a  common  policy-making  group;  i.e.,  in  the  pooling  of  com- 
mon experiences  on  labor-relations,  the  successful  technique  of 
one  firm  could  be  adopted  by  the  others.  This  was  true  of 
company  unions  —  every  corporation  represented  bad  a  company 
union. 

Similarly,  one  member  might  report  on  the  successful  method  his 
company  used  to  put  over  salary  reductions,  and  the  other  members 
would  probably  try  to  institute  the  same  procedure  in  their  plants. 
Mr.  Hale  of  General  Motors  told  how  impressed  he  had  been  at 
hearing  Joe  Larkin,  Bethlehem  Steel  Committee  member,  describe 
a  clever  method  of  bringing  strong  union  men  into  line: 

I  think  it  was  in  connection  with  one  of  the  subsidiaries  of 
Bethlehem  Steel,  if  I  remember;  it  was  the  Fall  River  Ship- 
building Co.  where  they  had  several  very  antagonistic  men 
elected  to  the  works  council,  very  strong  union  men,  you  might 
say,  and  inclined  to  be  —  we  might  use  the  term  broadly  — 
radical  in  their  views,  and  the  point  was  brought  out  there  that 
when  they  got  them  into  the  picture  and  these  men  had  an  op- 
portunity, through  that  medium,  to  see  some  of  the  company's 
problems,  how  they  were  going  at  things,  that  they  became  sup- 
porters for  the  company's  policies.  I  remember  that  particular 
discussion. 

This  kind  of  learning  from  the  other  fellow's  experience  is  usual 
—  we  all  do  it.  It  was  to  be  expected  that  these  labor-relations 
directors  of  different  large  corporations,  faced  with  the  same  prob- 
lems, would  join  together  to  discuss  those  problems  and  their  solu- 
tion. (Look  at  a  Goodyear  letter  to  Mr.  Cowdrick,  Appendix  E, 
for  an  example  of  how  full  the  members'  reports  to  the  committee 
were.)  Similarly,  it  was  to  be  expected  that  a  group  of  open  shop 
employers,  desirous  of  keeping  unionism  out  of  their  plants,  would 
join  together  in  an  organization  like  the  N.M.T.A.;  nor  need  anyone 
be  surprised  that  manufacturers  the  country  over,  hoping  to  present 
a  united  front  on  legislative  and  labor  matters,  would  join  together 
in  a  powerful  propaganda  organization  like  the  N.A.M.  The  fact 


i38  THE  LABOR  SPY  RACKET 

that  employers  organize  was  not  a  surprise  to  Adam  Smith  way 
back  in  1776.  It  should  not  be  a  surprise  to  us. 

Employers  are  staunch  believers  in  organization  —  for  them- 
selves. They  not  only  believe  in  it  —  they  practice  it.  Remember 
that,  the  next  time  you  read  about  the  fight  they  wage  against 
trade  unions,  the  organizations  of  the  workers. 


VII.  "The  American  Way 


NOW  LET'S  STOP  to  look  at  the  picture. 

Workers  in  plants  throughout  the  United  States  want  to  form 
unions  and  bargain  collectively.  They  want  to  organize.  Industrial- 
ists in  plants  throughout  the  United  States  also  want  to  organize. 
They  do.  Nobody  stops  them.  But  these  same  industrialists  are 
opposed  to  the  efforts  of  their  workers  to  organize  and  bargain  col- 
lectively. The  industrialists  do  not  oppose  unionization  in  word, 
but  they  do  in  deed.  Spies  are  hired  by  the  industrialists  to  help 
them  in  their  fight  against  trade  unions. 

What  is  a  spy?  Let  us  turn  to  the  Oxford  Dictionary,  "spy  —  a 
person  employed  in  time  of  war  to  obtain  secret  information 
regarding  the  enemy."  Spy  is  a  war  term.  And  labor  spies 
are  part  of  the  industrial  war.  Understand,  the  opponents 
in  this  war  are  not  the  workers  on  the  one  side  and  the 
detective  agencies  on  the  other.  Not  at  all.  The  detective  agencies 
are  the  tools  of  the  employers.  They  are  paid  by  the  employers. 
They  would  play  no  part  in  the  war  unless  they  were  hired  to  do  so. 
The  line-up  in  this  war  is  employers  vs.  workers,  Capital  vs.  Labor. 

Richard  Frankensteen,  on  the  stand  before  the  La  Follette  com- 
mittee, made  the  point  that  the  people  to  blame  for  the  spy  system 
were  not  the  spies,  but  the  employers  who  hired  them:  "I  would 
like  to  make  this  observation.  I  at  one  time  listened  in  on  a  trial 
before  Judge  Moinet,  a  Federal  judge  in  Detroit,  and  he  had  on 
trial  a  narcotic  salesman,  and  he  pointed  out  this  man  was  not  a 
dope-taker,  and  he  said  to  this  man,  'I  am  going  to  give  you  the 
highest  penalty  that  the  law  allows  me  to  give,  because  I  think  you 
are  much  worse  than  the  man  who  takes  dope,  than  the  average  addict, 
because  he  is  a  weak  man.' 

139 


i4o  THE  LABOR  SPY  RACKET 

"I  think  men  who  pose  as  decent  citizens,  men  like  Weckler 
[vice-president  of  De  Soto  Motor  Corporation,  Chrysler  subsidiary 
-AUTHOR]  and  K.  T.  Keller,  men  of  that  type  are  in  the  same  category 
as  that  dope  salesman  ...  I  want  to  say  that  the  type  of  men  that 
are  hired  for  these  spy  jobs  are  the  lowest  type  of  criminals  that  you 
can  find.  Many  of  them  have  criminal  records  a  mile  long,  and  yet 
the  same  corporations,  Mr.  Keller •,  Mr.  Weckler •,  and  the  rest  of 'them , 
hire  these  men  and  still  walk  around  as  decent  citizens,  and  I  say 
they  are  not." 

Of  course  the  dick  agencies  are  not  free  from  blame.  We  have 
seen  that  in  carrying  out  their  business  of  union-smashing,  they 
employ  revolting  methods,  they  lack  moral  scruples,  they  break 
the  law.  Nevertheless,  since  they  are  merely  hired  agents,  it  is  cor- 
rect to  say  that  the  detective  agencies  are  not  the  real  force  opposed 
to  the  workers.  Facing  the  workers  in  their  struggle  for  unioniza- 
tion and  collective  bargaining  are  the  industrialists  who  hire  the 
agencies  to  carry  on  their  work  of  destruction  and  pay  them  hand- 
somely for  it. 

The  workers'  struggle  for  unionization  is  a  hard  one.  The  employ- 
ing class  is  a  formidable  enemy.  Then  why  do  workers  persist  in 
the  fight?  Chief  Justice  Hughes  of  the  United  States  Supreme  Court 
gave  the  answer  in  the  majority  decision  in  the  Jones-Laughlin 
Labor  Board  Case:  "Long  ago  we  stated  the  reason  for  labor  or- 
ganizations. We  said  that  they  were  organized  out  of  the  necessities 
of  the  situation;  that  a  single  employee  was  helpless  in  dealing  with 
an  employer;  that  he  was  dependent  ordinarily  on  his  daily  wage 
for  the  maintenance  of  himself  and  family;  that  if  the  employer 
refused  to  pay  him  the  wages  that  he  thought  fair,  he  was  neverthe- 
less unable  to  leave  the  employ  and  resist  arbitrary  and  unfair 
treatment;  that  union  was  essential  to  give  laborers  opportunity  to 
deal  on  an  equality  with  their  employer." 

This  is  not  the  first  time  that  the  United  States  Supreme  Court 
has  held  that  workers  standing  alone  are  not  on  equal  terms  with 
employers,  that  only  by  organizing  into  unions  can  they  expect  to 


"THE  AMERICAN  WAY"  141 

"deal  on  an  equality  with  their  employer."  As  long  ago  as  1898  the 
Court  held  that  "the  proprietors  of  these  establishments  and  their 
operatives  [workers]  do  not  stand  upon  an  equality  .  .  .  the  pro- 
prietors lay  down  the  rules  and  the  laborers  are  practically  con- 
strained to  obey  them." 

One  group  wants  to  sell  labor,  the  other  group  wants  to  buy 
labor.  But  according  to  the  Supreme  Court  and  to  every  student  of 
the  subject,  the  two  groups  are  not  equal  in  strength.  The  laborers 
organize  into  unions  so  they  can  have  a  voice,  with  the  proprietors, 
in  "laying  down  the  rules."  That's  the  purpose  of  unionization,  of 
collective  bargaining.  The  men  who  join  labor  unions  are  the  work- 
ers who  have  learned  from  experience,  and  from  the  Supreme  Court 
and  other  official  government  bodies,  that  only  in  union  can  they 
obtain  the  strength  they  need  to  bargain  on  equal  terms  with  their 
employers. 

Any  one  reading  the  sugared  statements  of  our  captains  of  in- 
dustry would  never  for  a  moment  believe  that  they  are  opposed  to 
this  fundamental  first  step  of  their  workers.  No  dispute  between 
capital  and  labor  is  ever  complete  without  a  pretty  speech  by  the 
employer  that  he  is  not  at  all  opposed  to  unionization  or  collective 
bargaining.  That's  what  he  says.  What  he  does  is  quite  another 
matter.  This  is  an  old  story.  It  was  true  many  years  ago.  It  was  true 
in  1912.  It  is  true  today. 

The  1912  experience  is  illuminating.  In  that  year  Congress  passed 
an  act  calling  for  the  creation  of  a  Commission  on  Industrial  Rela- 
tions, which  was  to  inquire  into  the  existing  relations  between  em- 
ployers and  employees.  The  Commission  consisted  of  nine  members, 
three  representing  the  employers,  three  the  employees,  and  three 
the  general  public.  The  Commission  held  public  hearings  for  about 
six  months;  it  heard  witnesses  affiliated  with  employers,  with  labor, 
and  with  neither.  Part  of  its  report  reads:  "It  is  very  significant 
that  out  of  230  representatives  of  the  interests  of  employers,  chosen 
largely  on  the  recommendations  of  their  own  organizations,  less 
than  half  a  dozen  have  denied  the  propriety  of  collective  action  on 


I42 


THE  LABOR  SPY  RACKET 


the  part  of  employees.  A  considerable  number  of 'these  witnesses  have, 
however,  testified  that  they  denied  in  practice  what  they  admitted  to  be 
right  in  theory" 

This  denial  of  the  workers'  right  to  organize  still  goes  on.  It  is  the 
primary  cause  of  labor  disputes.  Contrary  to  general  opinion,  the 
fact  is  that  in  most  of  the  strikes  that  are  called  in  the  U.  S.,  the 
major  issue  is  not  wages  and  hours,  but  matters  pertaining  to  union 
organization  and  recognition.  The  latest  figures  from  the  U.  S.  De- 
partment of  Labor  show  that  this  is  true: 

MAJOR  ISSUES  INVOLVED  IN  STRIKES,  1934-1936 


*9 

34 

'9 

35 

*9 

S^ 

All  issues 

Number 

Per  cent 
of  total 

Number 

Per  cent 

Number 

Per  cent 

1856 

IOO.O 

2014 

IOO.O 

2156 

IOO.O 

Wages  and  hours  
Union  organization  .... 
Miscellaneous  

727 

853 
276 

39-3 
45-9 
14.8 

769 
952 

2Q7 

38.2 

47-3 
14.  c 

756 
1083 

717 

35-i 
50.2 

14.7 

Notice  that  in  every  case,  the  issue  of  union  organization  and 
recognition  was  the  primary  cause  of  strikes;  and  that  in  1936, 
this  was  the  issue  involved  in  more  than  half  the  disputes. 

The  blame  for  much  of  our  industrial  warfare  thus  lies  at  the 
doorstep  of  those  employers  who  refuse  to  allow  workers  to  unionize 
and  have  representatives  of  their  own  choosing.  In  the  Jones- 
Laughlin  decision  the  Supreme  Court  said  this  in  so  many  words: 
"Experience  has  abundantly  demonstrated  that  the  recognition  of 
the  right  of  employees  to  self-organization  and  to  have  representa- 
tives of  their  own  choosing  for  the  purpose  of  collective  bargaining 
is  often  an  essential  condition  of  industrial  peace.  Refusal  to  confer 
and  negotiate  has  been  one  of  the  most  prolific  causes  of  strife.  This  is 
such  an  outstanding  fact  in  the  history  of  labor  disturbances  that 


"THE  AMERICAN  WAY"  143 

it  is  a  proper  subject  of  judicial  notice  and  requires  no  citation  of 
instances." 

There  was  a  time  when  employers  were  within  their  legal  rights 
in  refusing  "to  confer  and  negotiate."  But  today  that  is  no  longer 
true.  The  fact  that  some  industrialists  still  continue  to  defy  the 
law,  places  squarely  on  their  shoulders  the  responsibility  for  the 
bloodshed  resulting  from  industrial  strife.  It  is  a  discouraging  fact 
that  so  many  of  them  —  leaders  in  their  communities  —  continue 
to  carry  that  responsibility.  They  are  quick  to  shout  "agitators" 
as  soon  as  a  strike  breaks  out,  yet  it  is  they  who  are  the  real  agita- 
tors, they  who  are  the  true  disturbers  of  the  peace. 

When  The  New  Tork  Herald  Tribune  in  its  lead  editorial  on 
February  10,  1937  said,  "It  is  now  recognized  by  custom  and  law 
in  this  country  that  labor  has  the  right  to  organize,  to  bargain  col- 
lectively through  representatives  of  its  own  choosing  and  to  strike", 
it  was  only  half  correct.  //  is  now  recognized  by  law  —  the  National 
Labor  Relations  Act,  passed  by  Congress  in  July  1935,  gave  labor 
those  rights.  But  it  is  not  now  recognized  by  custom  —  no  employer 
of  labor  spies  recognizes  it.  The  policies  of  Congress  as  declared  in 
the  Wagner  Act  are  completely  defeated  by  industrial  espionage. 
Those  industrialists  who  have  hired  labor  spies  have  violated  the 
law. 

What  are  we  to  think  of  these  revelations  of  unfair  and  illegal 
industrial  practices  on  the  part  of  employers?  Mr.  Walter  Lipp- 
mann,  in  his  column  in  The  Herald  Tribune,  March  6,  1937,  tells  us 
what  to  think:  "As  long  as  big  business  stood  intrenched  behind  its 
Pinkertons  and  its  dogmas,  it  was  in  fact  imbued  with  the  psychol- 
ogy of  class  war,  however  much  it  might  deplore  the  idea  when 
openly  preached  from  a  soapbox.  The  refusal  to  recognize  the  unions 
and  to  negotiate  with  them  could  not  by  any  possibility  be  de- 
scribed as  an  attitude  of  peace;  among  nations  the  equivalent  is  a 
refusal  to  have  diplomatic  relations,  an  act  just  short  of  war  which 
generally  leads  to  war." 

Thus  put  on  our  guard  by  Mr.  Lippmann  we  need  not  be  taken  in 


i44  THE  LABOR  SPY  RACKET 

by  such  statements  as  the  following  made  by  Mr.  Alfred  P.  Sloan, 
Jr.  on  July  26,  1934:  "The  Management  of  General  Motors  holds 
that  there  is  no  real  conflict  of  interests  between  employers  and 
employees  .  .  .  Enlightened  employers  and  enlightened  employees 
realize  that  they  have  a  mutuality  of  interests  such  as  to  dictate  the 
wisdom  of  maintaining  the  highest  degree  of  cooperation  and  har- 
monious relations." 

We  have  learned  that  these  are  merely  words  without  substance. 
Behind  them  is  the  reality  of  the  class  war,  as  exemplified  in  the 
use  of  Pinkerton  spies. 

Similarly,  when  the  sit-down  strikers  are  in  possession  of  the 
Chrysler  plant,  and  Mr.  K.  T.  Keller,  president  of  the  Chrysler 
Corporation,  runs  a  full-page  statement  in  the  newspapers  of  the 
country  in  which  the  following  assertion  is  made:  "This  company 
has  conducted  its  industrial  relations  by  and  in  accordance  with 
general  acknowledged  standards  of  fairness  and  equity"  -  we  are 
not  surprised.  We  are  now  aware  that  sugarcoated  sweet  phrases 
covering  the  bitter  pill  of  class  war  have  long  been  prescribed  for 
labor  by  capital.  We  leave  to  others  the  impossible  task  of  reconcil- 
ing the  employment  of  Corporations  Auxiliary  spies  with  "stand- 
ards of  fairness  and  equity." 

Occasionally  by  accident,  we  are  given  the  unusual  opportunity 
to  get  behind  the  scenes  as  one  of  the  employing  class  talks  to 
another.  Then  the  difference  between  their  silken  phrases  offered 
for  public  consumption  and  their  real  attitude  becomes  clear.  A 
letter  to  Commissioner  Sayre  of  the  N.M.T.A.  throws  some  light 
on  the  "private  thinking  of  these  representatives  of  the  powerful 
metal  trades  manufacturers: 

COLUMBUS  BRANCH  N.M.T.A. 

July  7,  1936 
Dear  Homer: 

.  .  .  What  do  you  think  of  the  advisability  of  having  an 
operative  whose  business  it  would  be  to  circulate  generally  and 


"THE  AMERICAN  WAY"  145 

keep  us  informed  in  regard  to  the  activities  of  our  friend  the 
enemy?  .  .  . 

H.  L.  ENNIS, 
Secretary. 

SENATOR  LA  FOLLETTE.  What  is  your  interpretation,  Mr. 
Sayre,  of  the  phrase  "  the  activities  of  our  friend  the  enemy " 
in  this  letter  ? 

MR.  SAYRE.  Well,  I  assume  that  Mr.  Ennis  refers  to  the  ac- 
tivities of  the  labor  organizations  which  are  attempting  to 
unionize  the  plants  of  the  members  of  the  association  .  .  . 

There  we  have  it.  The  "enemy"  is  the  labor  organizations  which 
attempt  to  unionize.  That  the  law  gives  these  organizations  that 
right  is  for  the  N.M.T.A.  beside  the  point. 

That's  frankness  in  private.  Frankness  in  the  open  is  indeed 
rare;  so  we  are  deeply  indebted  to  Mr.  Hal  Smith,  counsel  of  the 
Michigan  Manufacturers'  Association,  who  seems  to  express  the 
real  point  of  view  of  the  employers'  group.  "We  know  of  no  reason 
why  an  employer  in  his  plant  should  not  have  the  right  to  employ  a 
detective.  We  see  no  reflection  in  any  way  in  the  employment  of 
detectives.  'Detective'  and  'spy'  are  two  names  that  are  used  in  a 
derogatory  sense,  but  even  a  spy  has  a  necessary  place  in  time  of  war, 
and  it  is  not  always  that  they  are  to  be  condemned." 

This  spokesman  for  the  manufacturers  leaves  us  no  choice. 
We  realize,  from  his  statement,  that  Mr.  Lippmann  and  the 
"soapbox  preachers"  are  right  —  employers  believe  in  and  wage 
class  war. 

It  is  waged  in  a  number  of  ways.  Spying  is  only  one  weapon  in 
the  class  war.  When  that  fails,  when  the  unions  continue  to  enroll 
members  in  spite  of  the  work  of  stool-pigeons,  then  open  violence  is 
tried. 

The  Ford  Motor  Company  recently  provided  a  perfect  illustra- 
tion. There  was,  as  always,  the  usual  statement  that  the  men  may 
join  the  union  if  they  so  desire: 


146  THE  LABOR  SPY  RACKET 

Ford  Says  His  Men 
May  "Join  Anything'9 


They  Are  "Free,"  He  Declares,  but 

Would  Be  "Foolish"  to  Sign 

Up  in  Labor  Union 


DETROIT,  April  13  (AP).— Henry  Ford  declared  today 
that  his  employees  were  "free  to  join  anything  they  want 
to." 

"They  have  always  been  free  to  join  any  church,  any 
lodge  or  any  union  they  want  to,"  he  said  in  his  first  inter- 
view after  the  Supreme  Court  decision  upholding  the  Wag- 
ner Labor  Relations  Act. 

"Of  course  I  think  they  are  foolish  if  they  join  any  union. 
They  will  lose  their  liberty  and  all  they  will  get  is  the  right 
of  paying  dues  to  somebody." 

Mr.  Ford  here  makes  the  flat  assertion  that  his  men  "have  al- 
ways been  free  to  join  any  union  they  want  to."  That  statement  is 
simply  not  true.  Ford  employees  have  never  been  free  to  join  a 
union.  The  spy  system  in  the  Ford  plant  has  long  been  notorious. 
The  Ford  Company  does  not  hire  detective  agencies  —  it  has  its 
own  elaborate  spy  system  under  the  direction  of  Mr.  Harry  H. 
Bennett.  (In  this  respect  it  is  not  alone  —  many  companies  have 
their  own  service.)  The  complete  story  of  how  Mr.  Bennett's  "serv- 
ice men"  operate  has  never  been  told,  but  enough  is  known  to  give 
the  lie  to  Henry  Ford's  statement.  In  December,  1934,  before  the 
President's  joint  NRA-Labor  Department  inquiry,  the  testimony  of 
the  attorney  for  the  Mechanics'  Educational  Society  of  America 
was  taken.  Here  is  The  New  Tork  'Times  account  of  that  testimony: 
"Mr.  Sugar  said  that  the  Ford  Motor  Company's  'service'  men 


"THE  AMERICAN  WAY"  147 

were  in  the  habit  of  looking  through  the  employes*  lunch  boxes  and 
clothes  in  the  lockers  to  find  evidence  of  trade  union  literature. 

"According  to  Mr.  Sugar,  motion  pictures  were  made  of  a  demon- 
stration of  automobile  employes  by  the  Ford  Company,  the  films 
were  developed  and  examined  and  those  found  to  have  been  Ford 
workers  were  discharged.  He  promised  to  furnish  the  commission 
with  the  names  of  those  discharged." 

How  can  Mr.  Ford's  and  Mr.  Sugar's  statements  be  reconciled? 
They  cannot.  One  of  them  is  trying  to  pull  a  fast  one.  Which  one? 
Up  until  May  26,  1937,  either  case  might  have  been  hard  to  prove 
definitely.  But  on  that  day  something  happened  which  makes  it 
easy  to  judge. 

The  United  Automobile  Workers,  having  signed  agreements  with 
both  General  Motors  and  the  Chrysler  Corporation,  next  turned 
their  attention  to  the  Ford  Motor  Company.  The  union  organizers 
asked  for  and  received  permission  from  the  Dearborn  City  Council 
to  distribute  union  leaflets  to  Ford  workers  on  May  26.  Now  look  at 
the  pictures  (facing  page  106)  for  what  happened.  (Also  see 
Frankensteen's  own  account,  Appendix  F.) 

The  captions  are  taken  from  'The  New  York  World-Telegram  of 
May  27.  Evidently  the  editor  of  this  paper  did  not  believe  Harry 
Bennett's  explanation  of  who  did  the  slugging.  Here  is  Bennett's 
statement:  "The  affair  was  deliberately  provoked  by  union  officials 
...  I  know  definitely  no  Ford  service  men  or  plant  police  were  in- 
volved in  any  way  in  the  fight.  As  a  matter  of  fact,  the  service  men 
had  issued  instructions  the  union  people  could  come  and  distribute 
their  pamphlets  at  the  gate  so  long  as  they  didn't  interfere  with 
employes  at  work. 

"The  union  men  were  beaten  by  regular  Ford  employes  who  were 
on  their  way  to  work  on  the  afternoon  shift  .  .  ." 

The  World-telegram  caption  writer  was  not  taken  in  by  Bennett's 
statement.  He  didn't  believe  that  the  sluggers  were  "regular  Ford 
employes."  He  labels  them  what  they  were:  "Ford's  service  men." 
Look  at  the  next  picture  and  you  can  make  your  own  guess.  See  the 
handcuffs  sticking  out  of  the  back  pocket  of  the  "worker"  at  the 


148  THE  LABOR  SPY  RACKET 

left?  Ever  hear  of  an  auto  worker  who  needed  handcuffs  on  his  job? 
The  camera  doesn't  lie.  The  service  men  know  that  —  which  ex- 
plains why  "the  only  victims  of  the  fighting  besides  the  unionists 
were  several  of  the  photographers  at  the  scene." 

Violence.  Union  organizers  suddenly  beaten,  kicked,  and  driven 
away.  That  is  the  Ford  Motor  Company's  law-breaking  answer  to 
the  U.A.W.A.'s  attempt  to  unionize  Ford  workers.  (IRONICAL  NOTE: 
On  page  3  of  The  New  Tork  Times  of  May  27,  1937,  just  below  the 
picture  showing  the  beating  of  Frankensteen,  is  a  story  whose  head- 
line reads:  "Ford  Assets  Rose  to  $717,359,366  in  1936;  Profit  and 
Loss  Account  Gained  $  19,6 8 9,021.") 

Four  days  after  the  beating  at  Ford's,  on  May  30,  in  Chicago, 
more  violence.  Another  manifestation  of  the  class  war.  Ten  killed, 
forty  injured.  Why?  Because  the  Republic  Steel  Company,  continu- 
ing its  traditional  anti-union  policy,  chose  not  to  sign  an  agreement 
with  the  Steel  Workers  Organizing  Committee  of  the  C.I.O.  A 
strike  resulted.  On  Memorial  Day,  about  a  thousand  union  sym- 
pathizers, including  many  women  and  children,  marched  in  peaceful 
fashion  toward  the  Republic  Steel  Company  plant.  They  were  un- 
armed. They  were  several  blocks  from  the  gate  of  the  plant,  not  even 
on  company  grounds,  when  the  Chicago  police  in  their  capacity  as 
"protectors  of  the  company's  property,"  fired,  threw  tear  gas 
bombs,  then  attacked  with  clubs.  The  death  list  is  evidence  of  where 
the  responsibility  for  the  slaughter  lies.  Not  a  single  policeman  was 
shot. 

Joseph  Hickey,  one  of  the  wounded,  tells  what  happened:  "I 
went  to  the  meeting  and  they  decided  to  make  a  picket  line  at  the 
front  of  the  company.  I  went  out  with  the  rest  of  them  and  started 
to  walk  over  to  the  plant.  I  was  about  100  yards  behind  the  head  of 
the  line  when  the  uproar  began.  They  were  like  trapped  rats,  panic- 
stricken,  terrified. 

"I  saw  a  woman  fall  as  she  was  being  clubbed  by  the  policemen. 
She  was  bleeding  and  looked  like  she  was  dying.  I  ran  over  to  help 
her  and  leaned  down  to  pick  her  up,  when  the  police  hit  me  over  the 
head.  I  was  out  after  that." 


"THE  AMERICAN  WAY"  149 

So  horrible  was  the  massacre  that  Paramount  News,  which  filmed 
the  entire  episode,  found  it  advisable  not  to  release  the  film  for  pub- 
lic showings.  The  editor  explained  his  action  with  these  words: 
"Our  pictures  depict  a  tense  and  nerve- wracking  episode,  which,  in 
certain  sections  of  the  country,  might  very  well  incite  local  riot  and 
perhaps  riotous  demonstrations  in  theaters,  leading  to  further 
casualties."  This  news  editor  was  not  faint-hearted.  He  knew  his 
picture.  So  brutal  a  slaughter  of  innocent  men,  women,  and  children 
has  seldom  before  occurred  in  the  United  States  —  and  the  film 
shows  it  clearly.  Read,  in  Appendix  G,  the  story  the  suppressed 
film  tells,  written  by  a  person  who  saw  it. 

Workers  beaten,  sent  to  the  hospital,  killed.  This  is  the  price  of 
the  Republic  Steel  Company's  refusal  to  sign  a  contract  with  the 
union.  The  Carnegie-Illinois  Steel  Company  has  signed  such  a  con- 
tract —  and  there  is  peace.  The  Jones  and  Laughlin  Steel  Corpora- 
tion agreed  to  an  election  under  the  supervision  of  the  N.L.R.B.; 
the  employees  voted  17,412  for  the  C.I.O.  union,  7,207  against; 
Jones-Laughlin  signed  with  the  union  —  and  there  is  peace.  Over 
130  steel  companies  have  signed  contracts  with  the  union  —  and 
there  is  peace.  But  Republic  Steel  refuses  to  sign  —  and  blood  is 
spilled. 

The  violence  in  this  case  was  police  violence.  That  often  happens 
as  a  result  of  industrialists'  unwillingness  to  deal  with  unions.  And 
direct  violence  on  the  part  of  thugs  hired  by  the  employers  also  hap- 
pens often.  The  horrible  condition  of  affairs  in  Harlan  County, 
Kentucky,  which  has  given  that  place  the  well-deserved  name  of 
"Bloody  Harlan,"  is  known  to  all.  Union  meetings  broken  up  by 
riflemen;  the  murder  of  the  son  of  a  preacher  who  was  a  union  or- 
ganizer; the  frequent  beatings  of  union  organizers;  the  dynamiting 
of  their  cars  and  hotel  rooms;  the  incarceration  of  union  members  in 
an  iron  cage  under  a  porch  belonging  to  a  coal  firm;  Harlan  "jus- 
tice" as  portrayed  by  the  judge  who  phoned  a  coal  operator  to  ask 
him  how  to  dispose  of  the  case  of  an  arrested  union  organizer  —  all 
this  and  more  has  been  disclosed  by  the  La  Follette  committee. 
But  we  have  learned  to  expect  anything  to  happen  in  the  feudal 


150  THE  LABOR  SPY  RACKET 

domain  which  is  Bloody  Harlan.  It's  almost  as  if  Harlan  County 
were  not  a  part  of  the  United  States.  But  it  is  —  and  it  has  its 
counterpart  in  other  sections. 

In  1936  the  employees  of  the  Pekin  Distilling  Company  in  Pekin, 
Illinois,  complained  to  the  Labor  Relations  Board  of  espionage  in 
the  plant.  The  Board's  investigation  was  hamstrung  at  every  turn 
by  court  action  on  the  part  of  the  company.  The  men  went  out  on 
strike.  The  situation  was  tense.  This  was  the  moment  chosen  by  the 
Peoria  Manufacturers'  Association  to  deputize  two  gunmen  with 
criminal  records,  as  strike-breakers.  One  of  the  thugs,  Charles  Sum- 
mers, was  questioned  by  the  state  superintendent  of  supervision  of 
parolees.  Here  is  the  testimony  from  the  record: 

Question:  Were  you  ever  requested,  or  was  the  suggestion 
made  to  you,  or  were  you  ordered,  to  bump  off,  knock  off,  get 
rid  of,  or  put  in  the  hospital,  a  fellow  by  the  name  of  Kinsella 
and  a  fellow  by  the  name  of  Wilkie? 

Answer:  Yes.  Not  Wilkie,  but  Kinsella. 

j^J.  Charlie,  will  you  give  the  details  in  reference  to  the  best  of 
your  recollection? 

A.  Well,  in  short,  this  Kinsella  was  causing  a  lot  of  trouble 
for  the  Manufacturers'  Association,  and  Mr.  Roark  [secretary 
of  the  Association]  thought  it  would  be  a  good  idea  to  put  him  in 
the  hospital  for  a  while.  He  offered  me  $50,  $25  of  which  he  ad- 
vanced. That's  all  there  was  to  it  .  .  . 

The  scene  shifts  from  Illinois  to  Alabama.  Mr.  Elaine  Owen  is  ac- 
tive in  union  work  there.  Mr.  Le  May,  assistant  to  the  president  of 
the  Tennessee  Coal  Iron  and  Railroad  Company,  doesn't  like 
unions.  A  Pinkerton  solicitor  tries  to  get  some  business  from  him. 
Here  is  part  of  the  letter  the  Pink  wrote  to  Littlejohn  of  the  Atlanta 
office:  "On  my  last  two  trips  through  Birmingham  I  have  called 
upon  Mr.  E.  D.  Le  May,  assistant  to  the  President  of  the  Tennessee 
Coal  and  Iron  Railroad  .  .  .  Mr.  Le  May  confidently  told  me  that 
in  the  case  of  one  very  active  Communist,  Elaine  Owens,  they  pri- 


"THE  AMERICAN  WAY"  151 

vately  bad  him  taken  on  a  week's  'fishing  trip '  and  worked  on  him  sev- 
eral times  a  day  during  that  period,  with  the  result  that  he  left  Bir- 
mingham permanently." 

Understand,  these  quotations  are  not  from  the  diary  of  a  master 
racketeer.  These  orders  to  "put  him  in  the  hospital,"  and  "work  on 
him,"  are  issued  by  respectable  employers.  What  it  means  to  be  a 
union  organizer  in  conflict  with  the  T.  C.  &  I.,  what  it  means  to  be 
taken  on  a  "fishing  trip,"  has  been  described  by  Elaine  Owen.  Read 
his  account  in  Appendix  H. 

Sometimes  getting  rid  of  a  troublesome  union  man  is  the  com- 
pany's idea,  occasionally  it  springs  from  the  spy.  One  N.M.T.A. 
operative's  report  contains  the  significant  words,  "If  Newbold  and 
one  or  two  others  could  be  eliminated,  there  would  be  no  trouble." 
A  Pinkerton  spy  reports,  "I  believe  if  Shaw,  Baum,  and  Scholle 
were  eliminated  and  the  company  talked  to  the  people  that  main- 
tain the  picket  line,  an  agreement  could  be  reached."  Remember, 
again,  these  reports  are  sent,  not  to  a  Dutch  Schultz  or  an  Al 
Capone,  but  to  the  heads  of  big  manufacturing  firms. 

Such  reports  would  not  be  sent  if  those  industrialists  were  not  in  a 
mood  to  receive  them.  Unfortunately  they  are.  The  beatings  and 
killings  of  active  union  men  do  not  come  as  a  surprise  to  them. 
Where  these  industrialists  do  not  themselves  engineer  the  beatings, 
they  are  at  least  aware  that  they  are  going  to  happen.  Clifton  Slus- 
ser,  vice-president  and  factory  manager  of  Goodyear  Tire  and 
Rubber  Co.,  is  on  the  stand,  talking  about  the  Gadsden,  Alabama 
plant  of  Goodyear: 

SENATOR  LA  FOLLETTE.  Do  you  recall  that  .  .  .  you  offered 
to  bet  Mr.  Pollard  or  Mr.  Ricketts  $100  that  no  union  man 
could  organize  the  employees  in  the  Gadsden  plant  of  Good- 
year? 

MR.  SLUSSER.  I  do  not  recall  having  made  him  an  offer  of  a 
bet,  but  I  did  make  the  statement  that  they  could  not  go  to 
Gadsden,  in  my  opinion,  or  go  south  of  the  Mason-Dixon  line 


152  THE  LABOR  SPY  RACKET 

and  do  and  say  these  things  that  they  were  doing  and  saying  in 
Akron. 

SENATOR  LA  FOLLETTE.  Do  you  recall  stating  words  to  this  ef- 
fect, that  if  an  organizer  did  get  off  the  train  he  would  have  to 
come  back  on  a  stretcher  ? 

MR.  SLUSSER.  No;  I  told  him  he  might  get  his  head  knocked 
off.  (Laughter) 

Mr.  Sherman  H.  Dalrymple,  union  organizer  who  attempted  to 
address  a  meeting  of  Goodyear  employees  in  Gadsden,  Alabama, 
followed  Mr.  Slusser  on  the  witness  stand.  His  testimony  that  the 
meeting  was  broken  up  by  Goodyear's  "flying  squadron,"  and  that 
"his  head  was  knocked  off"  to  the  extent  that  he  was  sent  to  the 
hospital  suffering  from  concussion  of  the  brain,  proved  how  great  a 
prophet  Slusser  was. 

Mr.  C.  D.  Lesley,  a  Goodyear  employee  for  nine  years,  testified 
that  the  "flying  squadron"  was  given  military  training  for  a  period 
of  one  month.  Read  his  testimony.  The  Goodyear  Co.  anticipated 
that  a  strike  might  develop.  A  strike  for  this  great  company  meant 
a  war,  nothing  less: 

SENATOR  LA  FOLLETTE.  How  often  did  the  men  go  to  the  hall 
for  this  training? 

MR.  LESLEY.  Oh,  3  to  4  days  a  week,  depending  on  just  how 
serious  they  thought  this  thing  was  that  they  expected  to 
develop. 

SENATOR  LA  FOLLETTE.  And  how  long  did  the  training  period 
last? 

MR.  LESLEY.  I  think  I  am  safe  in  saying  close  to  a  month. 

SENATOR  LA  FOLLETTE.  And  each  one  of  these  sessions  of 
drill  that  you  had,  how  long  would  they  last  on  the  average  ? 

MR.  LESLEY.  About  two  hours. 

SENATOR  LA  FOLLETTE.  Did  you  receive  any  training  as  to  the 
use  of  any  kind  of  weapons,  gas  weapons  or  others  ? 


"THE  AMERICAN  WAY"  153 

MR.  LESLEY.  There  were  general  instructions  given  to  the  en- 
tire group  in  the  use  of  a  gas  gun  and  the  position  of  a  man  us- 
ing this  gun  in  the  various  formations. 

SENATOR  LA  FOLLETTE.  What  sort  of  particular  formations 
did  you  practice  that  had  to  do  with  riots? 

MR.  LESLEY.  Well,  the  one  that  they  stuck  to  very  close  was 
what  is  known  as  the  wedge  formation. 

SENATOR  LA  FOLLETTE.  Describe  that. 

MR.  LESLEY.  Well,  the  formation  is  made  by  a  group  of  men, 
and  when  they  are  in  their  position  the  formation,  or  it  appears 
as  though  it  is  a  wedge  with  a  spearpoint  and  so  forth,  and  the 
leading  man  is  supposed  to  be  the  man  to  lead  into  the  group, 
and  the  others  are  to  protect  him.  The  position  of  this  gas  man 
is  in  the  center,  and  it  is  for  his  protection  presumably. 

SENATOR  LA  FOLLETTE.  Would  you  describe  this  as  an  offen- 
sive or  defensive  formation  ? 

MR.  LESLEY.  Offensive;  absolutely. 

Keep  that  "offensive  formation"  in  mind  next  time  you  read 
about  company  guards  killing  picketers,  "in  defense  of  company 
property." 

Mr.  Lesley  was  not  telling  a  fairy  tale.  This  military  training  of 
Goodyear  workers  happened.  It  happened  at  the  other  rubber 
plants  too.  One  of  the  experts  in  charge,  Joseph  J.  Johnston,  Colonel 
of  Cavalry  of  the  Ohio  National  Guard  Reserve,  had  done  a  good 
job.  He  felt  that  in  applying  for  a  similar  position  with  other  firms 
he  could  give  the  Akron  rubber  companies  as  reference.  He  writes  to 
Mr.  C.  E.  Mitchell,  Industrial  Relations  Department,  General 
Motors  Corporation,  Detroit,  Michigan: 

My  Dear  Sir:  During  the  threatened  labor  trouble  in  the 
rubber  industry  in  Akron,  I  was  employed  by  the  Akron  rubber 
companies  to  organize  and  train  the  plant  protection  units  and 


154  THE  LABOR  SPY  RACKET 

take  general  charge  of  plant  defense.  By  getting  to  work  well  in 
advance  of  the  threatened  trouble,  I  believe  we  were  able  to 
prevent  the  strike.  /  had  fully  equipped  and  trained  1500  men. 
I  am  writing  to  you  to  inquire  if  you  would  be  in  need  of 
service  along  this  line.  I  can  refer  you  to  Mr.  Herbert  Cook  in 
charge  of  factory  safety  and  defense,  the  B.  F.  Goodrich 
Company,  Akron,  and  Mr.  William  Reese  of  the  same  capacity 
at  the  Firestone  Rubber  Company,  Akron,  or  any  of  the  offi- 
cials of  these  companies  that  you  would  care  to  write  to.  I 
might  also  refer  you  to  Sheriff  James  Flower  of  Summit 
County,  Akron,  whose  force  I  assisted  in  training. 

Now  we  don't  know  whether  or  not  Colonel  Johnston  got  the  job 
with  General  Motors.  But  we  do  know  that  if  he  did  get  it,  and  if  he 
was  sent  to  Flint  to  train  Chevrolet  or  Buick  workers,  he  found  all 
the  equipment  he  needed  waiting  for  him.  P.  H.  Kilean,  Lake  Erie 
Chemical  Company  agent,  wrote  to  Mr.  Ailes  on  September  30, 
1933: 

Ship  to  James  V.  Mills,  chief  of  police,  city  of  Flint,  Michi- 
gan the  following:  Ten  no.  16  gun  clubs  and  ten  dozen  (120)  no. 
i6-A  shells  for  same  .  .  .  Do  not  bill  the  city  of  Flint  for  this 
material.  Instead  send  the  bill  to  the  Manufacturers  Associa- 
tion of  Flint,  901  Industrial  Bank  Building.  Mail  it  for  the 
attention  of  James  Farber,  manager.  Mr.  Farber  is  the  one  who 
telephoned  me  this  order  this  morning. 

For  your  own  information  only,  /  have  reason  to  believe  this 
material  is  for  tbe  Chevrolet  Motor  Company;  but  they  do  not 
want  it  advertised  or  generally  known  that  they  are  the 
buyers. 

Several  months  later,  Mr.  Kilean  comes  through  again  with  an 
order,  this  time  for  Buick.  Same  secrecy  to  be  observed: 

Dear  Mr.  Ailes:  For  your  records,  please  be  advised  that  I 
sold  to  the  Buick  Motor  Company,  Flint,  Michigan,  two  long 


"THE  AMERICAN  WAY"  155 

range  gas  guns,  single  action,  of  the  hammer-hinged  type,  at 
$40  each,  and  1 2  long  range  tear  gas  charges  for  these  guns,  at 
$90  a  dozen,  or  a  total  of  $170. 

The  Buick  wanted  this  material  delivered  personally  to  their 
plant  protection  department,  to  circumvent  the  receiving  de- 
partment, so  I  took  it  up  myself  Wednesday. 

Now  all  this  is  particularly  interesting  in  the  light  of  a  request  for 
tear  gas  made  to  Lake  Erie  by  the  other  side  in  the  class  war.  What 
happens  if  a  union  wants  to  arm  itself  in  a  manner  similar  to  that  of 
Chevrolet,  Buick,  and  other  industrial  firms?  Will  the  Lake  Erie, 
like  the  armament  industry,  sell  to  both  sides?  It  will  not.  The  class 
war  is  evidently  different  from  ordinary  wars.  Witness  this  letter 
dated  May  13,  1936,  from  Mr.  Ailes  to  the  International  Brother- 
hood, Chauffeurs  and  Helpers  of  Bridgeport,  Connecticut: 

Gentlemen:  We  are  restricting  tbe  sale  of  our  tear  gas  weapons 
to  law-enforcement  agencies^  and  therefore  are  not  in  a  position 
to  quote,  in  answer  to  your  letter  of  May  loth.  We  do  not  sell 
through  dealers  .  .  . 

THE  LAKE  ERIE  CHEMICAL  COMPANY 
A.  S.  Ailes,  Vice  President 

That  Mr.  Ailes  was  not  telling  the  truth  in  the  italicized  sentence 
above,  you  have  already  seen  from  the  sale  to  Chevrolet  and  Buick. 
On  the  stand,  he  testified  that  thirty  to  thirty-five  percent  of  Lake 
Erie's  sales  went  to  individuals  or  corporations;  Mr.  Engelhart,  sales 
manager  of  the  Manville  Manufacturing  Co.,  testified  that  fifty 
percent  of  his  company's  sales  were  industrial. 

The  map  below,  drawn  by  the  La  Follette  committee,  shows  that 
preparing  for  violent  industrial  war  is  not  restricted  to  a  few  plants 
—  it  seems  to  be  part  of  the  pattern  of  American  industry,  like 
spying. 

Industrialists  love  to  make  speeches  about  "The  American 
Way."  Billboards  all  over  our  country  are  plastered  with  those 


i56 


THE  LABOR  SPY  RACKET 


SALE  OF  TEAR   8  SICKENING  GAS  a  EQUIPMENT 


familiar  words  —  "The  American  Way."  In  Europe  there  is  also  a 
class  war.  Yet  a  map  like  the  one  above,  before  the  advent  of  the 
Nazis,  could  not  have  been  understood  by  a  European.  And  labor 
spying  by  hired  detective  agencies  is  also  unknown  there.  It  is  com- 
pletely an  American  phenomenon.  Is  this  what  our  industrialists 
mean  by  "The  American  Way"? 


VIII.  What  Is  To  Be  Done? 

THE  MAJOR  PURPOSE  of  industrial  espionage  is  union-pre- 
vention and  union-smashing.  This  is  a  violation  of  the  laws  of  our 
country.  Spying  defeats  the  policy  of  Congress,  declared  in  the  Wag- 
ner Act,  that  labor  should  have  the  right  to  organize. 

What  is  to  be  done? 

Employers  who  want  to  obey  the  law  will  know  what  to  do. 
They  must  give  up  the  practice  of  hiring  spy  agencies.  This  does 
not  mean  that  they  are  to  replace  hired  spies  with  their  own  plant 
spies.  No.  They  must  not  interfere  in  any  way  with  the  efforts  of 
their  employees  to  organize,  to  join  unions. 

Employees  should  do  immediately  what  the  law  gives  them  a 
right  to  do  —  organize.  They  should  join  trade  unions.  It  is  all  to 
the  good  that  the  Wagner  Act  is  on  the  statute  books;  that  Wis- 
consin and  Indiana  have  laws  requiring  the  registration  of  opera- 
tives. Workers  should  demand  the  enforcement  of  these  laws  and 
the  passage  of  other  laws  against  the  use  of  spy  agencies.  Yet  that 
is  not  enough.  Workers  must  not  rely  on  legislation  alone  to  make 
it  impossible  for  law-breaking  employers  to  deprive  them  of  their 
rights.  The  way  to  win  for  all  time  the  right  to  join  trade  unions 
is  to  exercise  that  right,  now.  Legislation  helps,  but  without  the 
organized  might  of  the  united  workers  behind  them,  law  makers 
can  do  very  little.  The  only  way  for  workers  to  advance  their 
own  interests  is  by  building  up  and  strengthening  their  own  or- 
ganization —  the  trade  union. 

But  how  is  that  possible  so  long  as  employers  continue  to  plant 
spies  in  unions  to  disrupt  worker  organization?  It  is  possible.  It  can 
be  done.  Unions  can  be  organized  in  spite  of  crooked  spy  activities. 
They  have  been.  They  will  be. 

157 


158  THE  LABOR  SPY  RACKET 

However,  the  job  of  union-building  is  not  easy.  It  must  be  ap- 
proached seriously  and  sensibly,  with  determination  to  succeed. 
If  workers  tackle  the  job  in  that  spirit,  the  outlook  will  not  be  dis- 
couraging. Unions  have  discovered  and  exposed  spies  before.  They 
can  do  it  again. 

^he  essential  first  step  is  for  every  worker  to  make  it  Ms  task  to 
build  the  union^  just  as  the  spy  makes  it  his  task  to  tear  it  down. 
This  means  that  every  union  member  must  be  an  active  union 
member,  interested  in  what  is  going  on,  and  doing  his  share  of 
the  work.  Where  there  is  trade  union  democracy,  where  all  mem- 
bers are  alive  to  what  is  happening,  where  they  analyze  the  prob- 
lems, discuss  the  solutions,  and  participate  in  the  decisions,  there 
the  spy  cannot  so  easily  do  his  deadly  work.  Where  there  is  trade 
union  bureaucracy,  where  union  affairs  are  given  over  to  a  handful 
of  officers,  where  it  is  left  to  a  small  group  to  run  the  show,  there 
the  spy's  job  of  ruining  the  show  is  that  much  simpler. 

Every  union  member  must  adopt  the  spy's  tactic  of  keeping  his 
eyes  and  ears  open.  He  must  try  to  understand  what  is  happening 
in  his  organization  and  be  on  the  alert  for  sabotage.  Are  committee 
members  doing  the  work  they  are  supposed  to  do?  Was  that  Red- 
baiting speech  a  cover  for  inactivity  or  treachery  on  the  part  of 
the  member  who  delivered  it?  The  member  who  always  goes  in 
for  hair-splitting  —  is  he  really  honest,  or  is  he  a  wrecker?  These  are 
only  a  few  of  the  things  to  be  observed.  But  they  must  be  observed 
calmly  and  carefully.  The  fact  that  stool-pigeons  are  planted  in 
trade  unions  is  no  reason  for  undue  suspicion,  or  for  going  off  half- 
cocked  on  a  wild  spy-hunt.  Union  members  must  be  absolutely  cer- 
tain of  their  case  before  they  accuse  a  fellow  member  of  being  a  spy. 

Just  as  it  is  important  for  every  union  member  to  keep  his  eyes 
and  ears  open,  so  it  is  important  for  him  to  keep  his  mouth  shut. 
He  must  not  talk  too  much  —  particularly  to  the  fellow  who  asks 
too  much.  The  danger  of  "shooting  off  your  mouth"  is  real.  Witness 
the  case  of  Charles  Jennings,  a  union  organizer  who  should  have 
known  better.  A  spy  for  the  N.M.T.A.  writes  to  Mr.  Stringham: 
"  In  a  little  talk  with  Mr.  Earl  I  told  him  I  had  made  a  close  contact 


WHAT  IS  TO  BE  DONE?  159 

with  one  Charles  Jennings,  of  Jersey  City.  Jennings  is  the  State  or 
general  organizer  for  the  A.  F.  of  L.  He  tells  me  quite  freely  of  bis 
movements  and  plans  regarding  organization  work.  Of  course  he  does 
not  suspect  my  motives." 

Obviously  such  behavior  on  the  part  of  a  union  man  is  downright 
stupidity.  Spies  can  be  licked  —  but  an  important  first  requirement 
is  the  exercise  of  good  common  sense  by  union  members. 

Despite  the  fact  that  the  Wagner  Act  has  outlawed  the  employ- 
ment of  undercover  operatives  to  forestall  unionization,  despite 
the  fact  that  the  Supreme  Court  has  upheld  that  Act,  some  em- 
ployers will  continue  to  use  spies.  They  will  continue  to  use  them 
because  they  believe  that  spies  are  necessary  in  the  conduct  of 
business  today.  The  fact  that  this  is  not  true  doesn't  help  the  situa- 
tion any.  So  long  as  employers  believe  it  is  true,  spies  will  be  hired. 
When  Mr.  O.  P.  Briggs  was  Commissioner  of  the  National  Found- 
ers' Association,  he  said  that  the  spy  system  was  absolutely  essen- 
tial: "I  regard  this  as  one  of  the  very  best  investments  the  Associa- 
tion makes.  Without  it,  I  would  hardly  know  how  to  direct  the 
work  of  the  Association.  It  seems  to  be  an  indispensable  requisite 
to  good  results." 

When  Mr.  Weckler  was  on  the  stand,  he  indicated  that  he  too 
thought  there  was  some  excuse  for  the  spy  system.  In  answer  to  a 
question  from  Senator  Thomas,  he  said,  "I  think  it  is  very  essential 
that  an  employer  know  the  situations  which  surround  his  business. 
This  is  one  method  of  getting  information." 

Over  twenty  years  ago,  General  Atterbury  of  the  Pennsylvania 
Railroad,  testifying  before  the  Industrial  Relations  Commission, 
put  the  matter  bluntly:  "We  have  a  spy  system.  There  will  always 
be  one  until  a  better  method  of  handling  labor  relations  is  de- 
veloped." 

Employers  should  realize  that  "a  better  method  of  handling  labor 
relations"  has  been  developed.  It  is  for  them  to  grant  to  labor  its 
fundamental  right  to  organize  and  to  bargain  collectively  through 
representatives  of  its  own  choosing.  That  is  the  "better  method" 
which  makes  the  spy  system  unnecessary. 


160  THE  LABOR  SPY  RACKET 

Fair-minded  employers  will  realize  that  in  granting  that  right  to 
labor,  they  are  granting  only  what  they  have  always  enjoyed  them- 
selves. In  the  words  of  the  Supreme  Court,  "Employes  have  as 
clear  a  right  to  organize  and  select  their  representatives  for  lawful 
purposes  as  the  respondent  [employer]  has  to  organize  its  business 
and  select  its  own  officers  and  agents." 

This  means,  of  course,  that  industry  must  be  prepared  to  give 
up  its  outworn  slogan  that  has  caused  so  much  trouble,  "Nobody  is 
going  to  tell  me  how  to  run  my  business."  That  must  be  given  up 
because  it  no  longer  holds.  In  the  twentieth  century  it  is  not  accu- 
rate to  speak  of  a  business  as  "my  business."  Today,  business 
is  the  affair  of  both  the  employer  and  the  employee.  Fixing  the 
conditions  of  work,  the  hours  and  the  wages,  is  the  business  of  both 
the  boss  and  the  worker.  It  is  not  possible,  today,  to  permit  a 
single  employer,  or  a  group  of  employers,  to  determine  the  condi- 
tions of  labor;  labor's  representatives  must  have  an  equal  voice  in  the 
determination  of  those  conditions.  This  participation  by  those  who 
work  in  the  decisions  affecting  their  livelihood  is  nothing  more  or 
less  than  democracy  in  industry.  It  is  as  important  as  democracy 
in  politics  if  not  more  so. 

Labor's  voice,  when  it  is  heard,  must  not  be  that  of  individuals 
shouting  each  other  down.  It  must  be  a  collective  voice.  Only 
through  genuine  collective  bargaining  can  labor  attain  the  equality 
with  capital  that  is  its  right.  The  Wagner  Act  states  specifically 
that:  "Representatives  designated  or  selected  for  the  purposes  of 
collective  bargaining  by  the  majority  of  the  employees  in  a  unit 
appropriate  for  such  purposes,  shall  be  the  exclusive  representatives 
of  all  the  employees  in  such  unit  for  the  purposes  of  collective  bar- 
gaining in  respect  to  rates  of  pay,  wages,  hours  of  employment,  or 
other  conditions  of  employment." 

This  does  not  mean  that  individual  employees  or  groups  may  not 
present  their  grievances  to  the  employer.  Not  at  all.  It  does  mean, 
however,  that  they  are  prevented  from  making  separate  agree- 
ments with  the  employer  in  regard  to  hours,  wages,  and  working 
conditions,  which  are  the  sole  function  of  the  bargaining  agency. 


WHAT  IS  TO  BE  DONE?  161 

This,  again,  is  the  democratic  method.  Those  anti-union  em- 
ployers who  have  suddenly  become  concerned  with  the  rights  of 
the  minority  (strangely  enough,  they  never  gave  a  thought  to 
this  before  the  passage  of  the  Wagner  Act)  are  guilty  of  distortion 
of  the  facts.  Industry  is  run  on  the  principle  of  majority  rule;  so  is 
politics.  Many  millions  of  Americans  voted  for  Landon  in  the  last 
election;  many  more  millions  voted  for  Roosevelt.  Roosevelt  is  the 
president  not  alone  of  those  people  who  voted  for  him,  but  of  all 
the  people. 

To  argue  against  collective  bargaining  on  the  further  ground 
that  it  is  not  necessary,  because  employers  have  always  been  willing 
to  listen  to  the  grievances  of  their  employees,  is  contrary  to  the 
spirit  of  democracy.  The  Commission  on  Industrial  Relations 
pointed  this  out  in  a  striking  passage:  "A  great  deal  of  testimony 
has  been  introduced  to  show  that  the  employers  who  refuse  to  deal 
collectively  with  their  workmen  do  in  fact  grant  audiences  at  which 
the  grievances  of  their  workmen  may  be  presented.  One  is  repelled 
rather  than  impressed  by  the  insistence  with  which  this  idea  has 
been  presented.  Every  tyrant  in  history  has  on  stated  days  granted 
audiences  to  which  his  faithful  subjects  might  bring  their  com- 
plaints against  his  officers  and  agents.  At  these  audiences,  in  theory 
at  least,  even  the  poorest  widow  might  be  heard  by  her  sovereign 
in  her  search  for  justice.  That  justice  was  never  secured  under  such 
conditions,  except  at  the  whim  of  the  tyrant  is  sure.  It  is  equally 
sure  that  in  industry  justice  can  never  be  attained  by  such  a 
method." 

Some  die-hard  employers  who  see  that  collective  bargaining  has 
come  to  stay  have  resorted  to  two  tricks  to  retain  their  dictatorial 
power:  the  first  is  to  grant  collective  bargaining  —  to  a  company 
union;  the  second  is  to  build  up  the  myth  that  all  union  leaders  are 
crooks  or  Reds.  Intelligent  workers  will  not  be  fooled  by  either 
manoeuvre. 

The  company  union  is  a  fake.  It  is  a  dummy  organization  which 
enables  the  employer  to  control  both  sides  of  the  table  when  there 
is  any  attempt  at  collective  bargaining.  Workers*  representatives  in 


i62  THE  LABOR  SPY  RACKET 

a  company  union  cannot  be  free  and  fearless,  because  they  are  paid 
their  wages  by  the  man  with  whom  they  are  negotiating.  The  com- 
pany union,  by  its  nature,  prevents  the  workers  in  one  plant  from 
organizing  with  workers  in  other  plants.  Senator  Robinson  on 
April  7,  1937,  hit  the  nail  on  the  head  in  a  speech  delivered  on  the 
floor  of  the  Senate:  "Whenever  an  organization  is  fostered  and 
promoted  and  financed  by  the  company  itself  for  the  purpose  of 
controlling  the  laborers  and  preventing  them  from  exercising  the 
rights  which  sound  public  policy  guarantees  to  them  it  constitutes 
a  'company  union/  Of  course,  such  union  is  not  always  heralded 
as  a  scheme  or  enterprise  to  interfere  with  the  rights  of  laborers, 
but,  as  a  matter  of  fact,  the  object  is  to  control  the  workers  them- 
selves, particularly  in  their  exercise  of  the  right  of  collective 
bargaining." 

Workers  must  steer  clear  of  company  unions,  employees*  as- 
sociations, and  the  like.  They  must  profit  from  the  example  of  the 
employers  —  organize  in  groups  of  their  own  for  their  own  interests. 

They  must  not  let  themselves  be  fooled  by  the  lies  about  trade 
unions,  spread  by  the  splitters  of  the  ranks  of  labor.  The  leaders 
of  the  trade  unions  are  not  crooks  —  in  most  unions  there  is  a  very 
strict  periodic  accounting  of  all  union  funds.  The  instances  of  union 
officers  running  off  with  the  money  are  few  —  and  often  the  crook 
is  a  spy  sent  in  to  rob  the  treasury.  Racketeering  by  union  leaders 
does  occur,  but  it  is  highly  exaggerated.  There  is  less  racketeering 
by  union  leaders  than  by  business  leaders.  Trade  union  dues  are 
low  when  thought  of  in  terms  of  the  benefits  received.  Company 
union  dues,  where  they  exist  at  all,  are  lower  —  they  should  be 
because  the  benefits  go  to  the  employer,  not  to  the  worker.  The 
leaders  and  members  of  trade  unions  are  not  "Reds";  they  are 
Democrats,  Republicans,  Socialists,  Communists,  Catholics,  Jews, 
Protestants,  just  as  in  the  business  world. 

What  is  to  be  done  ? 

How  can  the  despicable  spy  system  be  destroyed?  Here  is  the 
answer,  given  by  John  L.  Lewis,  after  the  U.A.W.A.  had  signed  a 
contract  with  General  Motors:  "There  will  now  be  no  need  for 


WHAT  IS  TO  BE  DONE?  163 

labor  spies,  for  obviously  everybody  will  know  who  the  union 
members  are.  They  have  no  secrets  and  the  union  will  be  willing  to 
advise  General  Motors  of  any  action  taken  at  meetings.  The  same 
situation  will  now  prevail  as  obtains  in  the  mining  industry,  where 
there  are  no  secrets  and  where  detective  agencies  are  starving  to 
death.  This  detective  thing  is  a  ghastly  chapter  in  the  history  of 
General  Motors  and  the  whole  industry." 

Many  years  ago,  Henry  Demarest  Lloyd,  a  great  American, 
made  a  profound  observation  about  the  ghastly  business  of  indus- 
trial espionage.  He  said,  "A  spy  at  one  end  of  an  institution  proves 
that  there  is  a  tyrant  at  the  other." 

In  the  United  States  of  America  there  is  no  room  for  tyrants.  To 
get  rid  of  the  tyranny  in  American  industry  is  the  job  of  the  workers 
of  America.  There  is  only  one  way  to  do  it  — 

ORGANIZE! 


APPENDIX 


LIST  OF  DETECTIVE  AGENCIES 

AS  OF  APRIL  1936 

[NOTE.  —  This  list  is  based  on  that 
contained  in  Cabot  Fund  Report,  as  of 
1920;  agencies  added  are  preceded  by  an 
asterisk  (*).] 

Abbott's  Inc.,  Chicago. 

*Acme  Detective  Agency,  San  Francisco, 
Calif. 

*Active  Industrial  Service,  New  York 
City. 

Addis  Detective  Agency,  Philadelphia. 

A.  D.  T.  Protective  Service,  Cincinnati. 

*Aetna  Judicial  Service,  New  York. 

*A.  A.  Ahner  Detective  Agency,  St.  Louis, 
Mo.  (See  Industrial  Investigators  and 
Engineers,  Inc.) 

Alexander  &  Leweck,  Milwaukee. 

*American  Confidential  Bureau  (Charles 
W.  Hansen),  New  York  City,  605  Fifth 
Avenue. 

American  Detective  Service  Co.,  Chicago. 

*American  Loyalty  League,  San  Fran- 
cisco, Calif. 

*American  Plan,  George  W.  Frothingham, 
president,  and  John  A.  Lucett,  secre- 
tary, Cleveland,  Ohio. 

*American  Vigilant  Intelligence  Federa- 
tion, H.  A.  Jung,  Chicago. 

Armsworth  &  Cavett  Agency,  Pittsburgh. 

Ascher  Detective  Agency,  New  York  City. 

*Aster  Detective  Service  (William  M. 
Tivoli),  New  York  City. 

*Atlas  Detective  Bureau,  Philadelphia, 
Pa. 


Baldwin-Felts  Agency,  Roanoke,  Va.; 
Bluefields,  W.  Va. 

*Bargron  Detective  Agency,  Rockford, 
111. 

*Barthell  Detective  Agency,  Nashville, 
Tenn. 

*Bell  Detective  Service,  Philadelphia,  Pa. 

Bergoff  Bros.,  New  York  City.  (Bergoff 
Industrial  Service,  Inc.,  551  Fifth  Ave- 
nue, New  York.) 

*Berkshire  Detective  Agency,  Brooklyn, 
N.  Y.  (Joe  Lawrence,  alias  Joseph  La 
Bataglia). 

*Bernhard  Haas,  New  York  City. 

B  &  M  Secret  Service  Bureau,  Detroit. 

*Bodeker  National  Detective  Agency, 
Birmingham,  Ala.,  and  in  Chattanooga. 

*H.  S.  Boulin,  New  York  City. 

*Bowers  Detective  Service,  Philadelphia, 
Pa. 

*R.  W.  Bridgman  Detective  Bureau.  (See 
Morse  Detective  and  Patrol  Service.) 

*S.  S.  Brody,  Buffalo,  N.  Y. 

P.  J.  Burke  National  Detective  Agency, 
Boston. 

Burr-Herr  Agency,  Chicago. 

Burton  Detective  Agency,  Cleveland. 

Walter  J.  Burns,  Detroit,  Mich. 

William  J.  Burns,  International  Detective 
Agency,  Inc.,  New  York  City.  Branch 
offices  in  other  cities.  Representing 
American  Bankers'  Association.  Crim- 
inal, general,  industrial,  and  commercial 
detective  work.  Branch  offices  at  At- 
lanta, Baltimore,  Birmingham,  Boston, 
Brussels,  Bridgeport,  Buffalo,  Chicago, 
Cincinnati,  Cleveland,  Dallas,  Denver, 


1 66 


APPENDIX 


Des  Moines,  Detroit,  El  Paso,  Houston, 
Jacksonville,  Kansas  City,  London,  Los 
Angeles,  Memphis,  Miami,  Minne- 
apolis, Montreal,  New  Orleans,  New 
York,  Oklahoma  City,  Paris,  Phila- 
delphia, Pittsburgh,  Portland,  Provi- 
dence, Richmond,  Salt  Lake  City,  San 
Francisco,  Seattle,  Spokane,  St.  Louis, 
St.  Paul,  Toronto,  Vancouver,  Wash- 
ington, D.  C.,  Wilkes-Barre. 

Butler  System  of  Industrial  Surveys, 
New  York. 

H.  J.  Carling,  St.  Paul. 

*Central  Industrial  Service  (see  R.  A.  and 
I.  Co.),  Pittsburgh,  Pa. 

*Clarke's  Detective  Agency,  Buffalo, 
N.  Y. 

R.  J.  Coach  Co.,  Cleveland. 

*Harry  J.  Connors  (aided  by  James 
Walsh),  New  York. 

*Contra  Costa  County  Industrial  Associa- 
tion, Richmond,  Calif. 

Thomas  J.  Corbally  Detective  Agency, 
Inc.,  Newark,  N.  J. 

Corporations  Auxiliary  Co.,  New  York 
City,  incorporated  in  Ohio,  uses  name 
"International  Auxiliary  Co."  in  New 
York  State.  Employment  service  under 
name  of  "Eastern  Contracting  &  Engi- 
neering Co."  at  same  address.  Other 
offices  at  Chicago,  Cleveland,  St.  Louis, 
Buffalo,  Milwaukee,  Pittsburgh,  Cin- 
cinnati, and  Detroit. 

Corporations  Service  Bureau,  Detroit. 

*Corporations  Service  Investigation  Cor- 
poration, Youngstown,  Ohio.  (See  Na- 
tional Corporations  Service,  Inc.) 

*D.  F.  Costello  Bureau,  San  Francisco, 
Calif. 

Cal  Crim  Agency,  Cincinnati. 

*Cresswell  Agency,  Akron  Savings  & 
Loan  Building,  Akron,  Ohio. 

*H.  C.  Gumming  Detective  Agency, 
Reading,  Pa. 

*Russell  Davis,  San  Francisco,  Calif. 

*W.  C.  Dannenberg,  in  West  Monroe 
Street,  Chicago. 


*Dawn  Patrol,  Detroit,  Mich. 

*Dougherty's  Detective  Bureau,  New 
York  City. 

*W.  Howard  Downey  and  Associates, 
New  York,  Chicago,  Atlanta,  Toronto. 

*Drummond  Detective  Agency,  521 
Fifth  Avenue,  New  York. 

Dunn's  National  Detective  Agency,  De- 
troit. 

*Arthur  F.  Eagan,  New  York  City. 

*Eagle  and  Industrial  Associates,  New 
York  City.  (.SVfEagleDetectiveAgency; 
Sherwood  Detective  Bureau.) 

Eagle  Detective  Agency,  New  York  City. 
(See  Sherwood  Detective  Bureau; 
Eagle  Industrial  Associates.) 

*Eastern  Engineering  Co. 

Employer's  Detective  Service,  St.  Paul. 

Farley  Detective  and  Strikebreaking 
Agency,  Chicago,  111.,  Milwaukee. 
Principal,  Jim  Farley,  dean  of  Ameri- 
can strikebreakers. 

*Farrah  Secret  Service,  Detroit,  Mich. 

John  E.  Ferris  Intelligence  Service,  Mil- 
waukee. 

*Fred  Fields  Detective  Agency,  Cleve- 
land. 

*William  J.  Flynn  Agency,  New  York 
City,  1457  Broadway. 

*Forbes  International  Detective  Agency, 
Philadelphia,  Pa. 

Robert  J.  Foster  Service,  New  York  City, 

*Franklin  &  Stoner,  New  York  City, 
Philadelphia. 

Gale  National  Detective  Agency,  St 
Paul. 

*Gignat  Secret  Service,  Private  Detective 
Agency,  San  Francisco,  Calif. 

Gordon  &  Allen,  St.  Paul. 

F.  P.  Gordon  Detective  Bureau,  Mil- 
waukee. 

Goldsmith  Agency,  Cleveland. 

*Gorman  Detective  Agency,  Buffalo 
N.  Y. 

Gorton  National  Detective  Agency,  Chi 
cago. 


Greensburg  Detective  Agency,  Greens- 
burg,  Pa. 

Matthew  Griffin  Co.,  Philadelphia. 

Hallerin  Agency,  Grand  Rapids,  Mich. 

Hamilton  Detective  Agency,  Pittsburgh. 

Hannons  Detective  Agency,  Minneapolis. 

The  Edward  J.  Hargrave  Secret  Service, 
Chicago. 

Harding  Detective  Agency,  Chicago,  111. 

Harris  Detective  Agency,  Pittsburgh. 

*Hartford  Private  Detective  Bureau.  (See 
Morse  Detective  and  Patrol  Service.) 

*Edward  Z.  Holmes  Detective  Bureau, 
New  York  City. 

Hoy  Detective  Bureau,  Minneapolis. 

*Otis  Hulbert,  Cleveland,  Ohio.  (See  Na- 
tional Corporation  Service,  Inc.) 

*Industrial  Council  of  Washington,  Seat- 
tle, Wash. 

Industrial  Defense  Detective  Agency, 
Boston. 

*Industrial  Investigators  and  Engineers. 
(See  A.  A.  Ahner  Detective  Agency.) 

Industrial  Relations  Service,  Ltd.,  New 
York  City. 

international  Auxiliary  Co.,  Kenmore, 
N.  Y.,  Buffalo,  N.  Y.,  Hartford,  Conn. 

Independent  Operation  Union,  Pitts- 
burgh, Pa. 

*Intercity  Protective  Agency,  New  York 
City. 

International  Detective  Agency,  Phila- 
delphia, Pa. 

International  Detective  Service,  Minne- 
apolis. 

international  Labor  Bureau.  (See  R.  A. 
and  I.  Co.) 

*International  Library  Service.  (See  R.  A. 
and  I.  Co.) 

The  International  Secret  Service  Co., 
Chicago. 

Interstate  Detective  Agency,  Chicago. 

Jerome  Agency,  Pittsburgh  (headquarters 
in  San  Francisco). 

Frederick  W.  Job,  expert  in  labor  matters, 
Marquette  Building,  Chicago. 


APPENDIX  167 

*Col.  Joseph  Johnston  (Lake  Erie  Chemi- 
cal Co.),  Cleveland. 

J.  Oswald  Jones,  detective  agency,  St. 
Paul. 

*A.  J.  Kane  Detective  Agency,  San  Fran- 
cisco, Calif. 

The  Kane  Service,  Chicago. 

Kelly-Gleason  Detective  Agency,  Minne- 
apolis (branch  office  in  Des  Moines). 

Capt.  Bernard  Kelcher,  New  York  City. 

*Kemp  Agency,  Nason  &  Roolett,  Inc., 
San  Francisco,  Calif. 

*Keystone  Operation  Union,  Pittsburgh, 
Pa. 

*Keystone  State  Detective  Agency,  Phil- 
adelphia, Pa. 

*Kurty  Detective  Agency,  Wilkes-Barre, 
Pa. 

*Robert  Lawrence  Detective  Agency, 
Brooklyn,  N.  Y. 

Edmund  Leigh,  New  York  City.  (See  Na- 
tional Intelligence  Plant  Protection 
Service.) 

Madison  Detective  Bureau,  New  York 
City. 

*Managers  Operation  Union,  Pittsburgh, 
Pa. 

*Manufacturers'  and  Merchants'  Inspec- 
tion Bureau.  (See  Howard  W.  Russell, 
Inc.) 

Manufacturers'  Auxiliary  Co.,  Detroit. 

Manufacturers'  Efficiency  Service,  De- 
troit. 

Manufacturers'  Service,  Cleveland.  (See 
H.  Clay  Folger,  Schofield  Bldg.,  Cleve- 
land.) 

*Ignatius  McCarty,  San  Francisco,  Calif. 

*McDuff  National  Detective  Agency, 
Birmingham,  Ala. 

*G.  T.  McNulty,  Inc.,  Philadelphia,  Pa. 

Merchants'  Industrial  Association,  New 
York  City. 

Merchants'  National  Detective  Bureau, 
St.  Paul. 

*Merchants'  Secret  Service  Corporation, 
Fort  Wayne,  Ind. 


i68 


APPENDIX 


*Metlers  Mutual  Agency,  Sikeston,  Mo. 

Metropolitan  Agency,  Cleveland  and  De- 
troit. 

Jake  Mints  Agency,  Cleveland. 

The  Mooney-Boland-Southerland  Corpo- 
ration, Chicago,  Detroit,  New  York 
City.  (See  Fred  C.  Mumford  Agency.) 

Tommy  Moran,  Pittsburgh. 

*More  Detective  and  Patrol  Service,  Wil- 
son, Conn. 

*Fred  C.  Mumford  Agency  (successor  to 
Mooney  &  Boland),  New  York  City. 

The  Murphy-McDonnel  Secret  Service 
Co.,  Detroit. 

The  Murphy  Secret  Service,  Detroit. 

McGovern  Detective  Service,  Pittsburgh 
(special  representatives  in  20  cities). 

McGrath  Secret  Service  Co.,  8820  Car- 
negie Ave.,  Cleveland. 

McGuire  &  White  Agency,  Chicago. 

McLellan's  Detective  Bureau,  New  York 
City. 

Morgan  Detective  Agency,  Boston. 

National  Mutual  Service. 

National  Manufacturers'  Syndicate. 

These  last  two  names  are  used  by  the 
personnel  and  training  department  of 
the  Sherman  Service,  Inc.  National 
Manufacturers'  Syndicate  has  its  head 
office  in  Chicago  and  recruiting  offices 
at  New  York  City  and  Boston.  Other 
offices  are  in  Philadelphia,  Cleveland, 
St.  Louis,  and  Toronto. 

*National  Corporation  Service,  Inc.  (E. 
E.  MacGuffin),  Youngstown,  Ohio. 

*National  Corporation  Service  of  La., 
New  Orleans. 

*National  Detective  Agency,  Newark, 
N.J. 

National  Detective  Agency,  Detroit. 

*National  Detective  Service,  Philadel- 
phia, Pa. 

National  Erectors'  Association,  Chicago. 

National  Founders'  Association,  Chicago. 

National  Metal  Trades  Association,  Chi- 
cago. 

*New  Jersey  Engineering  Corporation. 


North  American  National  Detective  Bu- 
reau, East  Minneapolis. 

North  Western  Detective  Agency,  New 
York  City. 

Northern  Information  Bureau,  Minne- 
apolis. 

O'Brien  &  Sons  Detective  Agency,  Chi- 
cago. 

Captain  O'Brien's  Detective  Agency, 
New  York  City. 

J.  F.  O'Brien  Detective  Agency,  Newark, 
N.J. 

Rouse  O'Brien,  Cincinnati,  Ohio. 

*O'Connell  Detective  Agency,  342  Madi- 
son Avenue,  New  York. 

*Val  O'Farrell  Detective  Agency  (A.  B. 
Ownes),  New  York  City. 

O'Neil  Secret  Service,  Detroit. 

*Val  O'Toole's  Detective  Agency,  New 
York  City.  (See  Pioneer  Industrial 
Service.) 

*Pattee  Service,  St.  Louis. 

*Forest  C.  Pendleton,  Inc.  (See  R.  A.  &  I. 
Co.) 

*Pennsylvania  Industrial  Service.  (See  R. 
A.  &  I.  Co.) 

Perkins  Union  Detective  Agency,  Pitts- 
burgh. 

*Peterson  Detective  Agency,  Pittsburgh. 

Pinkerton's  National  Detective  Agency. 
Offices:  New  York,  Boston,  Philadel- 
phia, Los  Angeles,  Hartford,  Syracuse, 
Baltimore,  Atlanta,  Buffalo,  Montreal, 
Dallas,  Cleveland,  Toronto,  Pittsburgh, 
Chicago,  Detroit,  Cincinnati,  Minne- 
apolis, Denver,  St.  Paul,  St.  Louis, 
New  Orleans,  Richmond,  Kansas  City, 
Houston,  Providence,  San  Francisco, 
Salt  Lake  City,  Spokane,  Seattle,  Port- 
land, Ore.,  Indianapolis,  Omaha,  Mil- 
waukee, Scranton. 

*Pioneer  Industrial  Service,  New  York 
City. 

Pioneer  International  Detective  Bureau, 
Minneapolis. 

Production  Service  Co.,  Cincinnati. 


APPENDIX 


169 


Railway  and  Industrial  Protective  Asso- 
ciation, Philadelphia  and  Pittsburgh. 

Railway  Audit  &  Inspection  Co.,  Phila- 
delphia and  Pittsburgh. 
*Pennsylvania  Industrial  Service. 
*Central  Industrial  Service. 
""International  Library  Service. 
*Forest  C.  Pendleton,  Inc. 
*International  Labor  Bureau. 

Ray  Detective  Agency  &  Merchants' 
Secret  Service,  Boston. 

Edwin  L.  Reed  &  Co.,  Chicago. 

Rhodes  Secret  Service  Bureau,  Cleveland. 

Dominick  G.  Riley  Detective  Bureau, 
Inc.,  New  York  City. 

Teddy  Roberts,  Pittsburgh  and  West 
Virginia. 

Howard  W.  Russell,  Inc.,  or  Manufactur- 
ers' and  Merchants'  Inspection  Bureau, 
Milwaukee;  industrial  department,  es- 
pionage work  in  factories. 

*Saile-Pierson  Detective  Agency,  Phil- 
adelphia. 

*Stahl  Secret  Service,  Philadelphia,  Pa. 

Schindler,  Inc.,  New  York  City.  Handles 
Sherman's  civil  and  criminal  work. 

Scott  Secret  Service,  Philadelphia  (now 
Frank  L.  Scott  Detective  Agency, 
Boston). 

G.  A.  Seagrove  Co.,  Chicago. 

Shea  and  Farley  Detective  Bureau,  New 
York  City. 

Sherman  Service,  Inc. 

Offices  (headquarters  now  at  New 
York  City):  Boston,  St.  Louis,  Phil- 
adelphia, Cleveland,  Providence,  New 
York,  Chicago,  New  Haven,  Detroit. 

Shippy-Hunt  International  Detective 
Agency,  Chicago. 

Soule  Secret  Service,  Chicago. 

Standard  Protection  Co.,  Cleveland. 

Standard  Secret  Service  Agency,  Detroit. 

Standard  Service  Co.,  Cleveland. 

Stanley  Detective  Agency,  Chicago. 

*Sterling  Secret  Service,  Detroit,  Mich. 

*Carl  Swinburne  Agency,  St.  Louis. 

Tate's  Detective  Bureau,  Philadelphia. 


*Sherwood  Detective  Bureau.  (See  Eagle 

Industrial  Associates.) 
*Smith's  Detective  Agency,  Dallas,  Tex. 
*Standard  Industrial  Service,  New  York, 

N.  Y. 
Thiel  Detective  Service  Co.,  New  York 

City;  central  office  now  in  Chicago,  St. 

Louis,   Mo.,   St.   Paul,   other   branch 

offices. 

Trotter  Detective  Bureau,  Minneapolis. 
*Elsie  M.  Tunison,  Detroit,  Mich. 
*T.  R.  Turner,  New  York. 
William    J.    Turner    Detective    Agency, 

Chicago. 
*United   Detective   Bureau,   New   York 

City. 

*United    Detective   Service,    San    Fran- 
cisco, Calif. 

United  Service  Co.,  Cleveland. 
Waddell-Mahon  Agency,  New  York  City. 
Washington     Detective     Agency,     New 

York  City. 
Washington  Service  Bureau,  New  York 

City  (Jack  Cohen,  A.  D.  Cohen). 
*Watkins     Jacobs     Detective     Agency, 

Youngstown,  Ohio. 
*Watts  &  Whelan,  Detroit,  Mich. 
Western  Construction  Co.,  Chicago. 
*C.   R.  Williams  Investigating  Bureau, 

New  York  City. 
Williams  Agency,  Boston. 
Wilson's  Detective  Agency,  Milwaukee. 
Daniel  Wolff  Agency,  New  York  City. 
*Wood  Service  System,  1228  Ninety-first 

Street,  New  York  City. 
Young's   Detective  Agency,  New  York 

City. 

1  —  Prelim.,  p.  72  ff. 

B. 

Type  of  spy  report  received  by  Mr. 

Weckler  of  the  Chrysler  Corp. 

SPECIAL  REPORT  COVERING  MEETING  OF 
DELEGATES  OF  THE  UNITED  AUTOMO- 
BILE WORKERS  (A.  F.  OF  L.)  AND  AF- 
FILIATED UNIONS,  HELD  TUESDAY, 
JULY  yTH,  1936 
A  special  meeting  of  local  officers  of  the 


170 


APPENDIX 


United  Automobile  Workers  and  dele- 
gates and  officers  of  the  Automotive  In- 
dustrial Workers  Association,  Mechanics 
Educational  Society  and  Associated  Au- 
tomobile Workers  of  America,  was  held 
Tuesday  evening,  July  yth,  at  A.I.W.A. 
headquarters,  8944  Jos  Campau  Avenue, 
with  an  attendance  of  about  60  officers 
and  delegates. 

Richard  Frankensteen  acted  as  chair- 
man. Arthur  Greer  served  as  secretary. 

The  first  question  brought  before  the 
meeting  was  in  connection  with  straight- 
ening out  the  list  of  delegates  that  were 
selected  to  serve  on  the  District  Organiz- 
ing Committee  at  a  previous  meeting, 
held  Tuesday  evening,  June  3oth.  At  that 
meeting  there  was  much  confusion  as  to 
who  was  appointed  to  the  committee  and 
in  some  cases  delegates  were -appointed  to 
the  committee  and  did  not  know  it  while 
in  other  cases  certain  delegates  believed 
they  were  on  the  committee  but  found  out 
later  on  that  they  were  mistaken. 

This  evening  a  complete  list  of  the  tem- 
porary Organizing  Committee  of  21  was 
made  known  as  follows: 

George  Wilson,  Dodge 

"Red"  Miller,  Mixed  Local  #155  (for- 
merly M.  E.  S.) 

Cliff  Zimmerman,  Dodge 

Arthur  Greer,  Hudson  Motor 

Gould,  Murray  Body 

R.  Thomas,  Chrysler  (Kercheval) 

Reuther,  Terns  ted  ts 

Kindle,  Kelsey  Wheel 

McKie,  Ford  Motor 

Willis,  Motor  Products 

Ayers,  Graham-Paige 

Andrews,  Dodge 

Loyd  Jones,  Motor  Products 

Maurice  Fields,  Dodge 

J.  Kennedy,  Chrysler 

Barber,  Fisher  Body  Local  #157  (for- 
merly M.  E.  S.) 

Berry,  Zenith  Carburetor 

Coleman,  Herron-Zimmer  Molding  Co. 


A  letter  prepared  by  Seymour,  an  offi- 
cer of  the  transmission  department  dis- 
trict local  (Dodge),  was  read,  in  which 
Seymour  suggested  that  members  of  or- 
ganized labor  should  confine  their  pur- 
chases as  much  as  possible  to  merchandise 
bearing  the  union  label.  He  explained  in 
his  letter  that  many  members  of  organ- 
ized labor  overlook  entirely  the  union 
label  program  and  soon  fall  into  the  habit 
of  buying  merchandise  that  is  made 
under  "unfair  open  shop"  conditions. 

The  only  comment  made  about  this  let- 
ter was  when  the  delegates  agreed  to  carry 
out  this  recommendation  as  closely  as 
possible. 

Secretary  Arthur  Greer  read  some  pre- 
pared statements  issued  at  the  time 
Mayor  Tenerowicz  of  Hamtramck  was  a 
candidate  for  election  this  year.  Accord- 
ing to  the  statement  read  by  Greer, 
Mayor  Tenerowicz  in  his  campaign  for  the 
office  of  Mayor,  stated  that  if  elected  to 
office,  he  would  see  that  the  Hamtramck 
Police  Department  would  not  interfere 
with  peaceful  picketing  or  escort  "strike 
breakers"  to  a  plant  and  in  fact  would 
keep  the  Police  Department  out  of  the 
strike  as  long  as  the  strikers  did  not  resort 
to  destruction  of  private  property.  Also 
in  this  statement,  that  Greer  read,  Mayor 
Tenerowicz  stated  that  he  would  also  stop 
the  Police  Department  from  interfering 
with  the  distribution  of  handbills  around 
the  plants. 

Following  the  reading  of  this  letter, 
Frankensteen  remarked  that  the  Ham- 
tramck Police  are  interfering  to  some  ex- 
tent with  the  distribution  of  handbills. 
During  the  discussion  that  followed,  it 
was  agreed  to  send  a  typewritten  copy  of 
these  statements,  made  during  the  election 
campaign  this  year,  to  Mayor  Tenerowicz 
and  another  copy  to  the  Hamtramck  Po- 
lice Department.  Also  copies  will  be 
mimeographed  later  on  and  sent  out  to  all 
members  of  the  United  Automobile  Work- 


APPENDIX 


171 


ers,  especially  members  of  local  unions  in 
Hamtramck.  .  .  . 

Frankensteen  said  during  the  past  week 
he  has  talked  upon  several  occasions  to 
small  groups  of  Fisher  Body  employees  of 
the  Piquette  Avenue  plant,  having  met 
them  nearby  in  beer  gardens  and  res- 
taurants, and  his  contacts  indicate  that 
these  men  are  deeply  interested  in  organ- 
ization and  all  that  is  necessary  to  bring 
them  into  the  folds  of  organized  labor  is 
some  constructive  work  on  the  part  of  the 
organizers.  Frankensteen  said  he  intends 
to  keep  in  touch  with  the  Fisher  Body  em- 
ployees and  will  assist  the  organizers  in 
preparing  meetings  and  will  also  speak  at 
these  gatherings. 

Frankensteen  announced  that  a  series 
of  four  mass  meetings  will  be  held  in  dif- 
ferent sections  of  the  city,  commencing  on 
Thursday  evening  of  this  week.  He  said  on 
Thursday,  July  9th,  the  first  of  these  mass 
meetings  will  be  held  at  Chandler  Park 
and  included  among  the  speakers  will  be 
Adolph  Germer,  the  personal  representa- 
tive of  John  L.  Lewis  and  his  Committee 
for  Industrial  Organization.  He  explained 
this  mass  meeting  is  being  held  especially 
for  employees  of  Chrysler,  Hudson  Motor, 
Zenith  Carburetor,  Motor  Products, 
Briggs,  Budd  Wheel,  Bower  Roller  Bear- 
ing, Freuhauf  Trailer,  Federal  Mogul, 
Bohn  Aluminum,  Acme  Die  Cast  and 
Detroit  Vapor  Stover.  He  said  the  mass 
meeting  next  week  will  probably  be  held 
in  Hamtramck  and  efforts  will  be  made  to 
secure  the  Rosinski  Stadium,  at  the  corner 
of  Jos.  Campau  Avenue  and  Dan  Street. 
He  explained  that  it  is  not  certain  if  this 
stadium  can  be  rented  and  the  exact  date 
of  the  meeting  next  week  has  not  been 
decided  upon.  He  said  this,  however,  will 
be  announced  later  this  week  over  the 
radio  broadcasts  on  Friday,  and  Saturday 
on  Station  WMBC.  In  this  connection, 
Frankensteen  explained  that  the  United 
Automobile  Workers  have  secured  time 


on  Station  WMBC  on  Friday  evenings 
from  10:15  P.  M.  to  10:30  P.  M.  and  on 
Saturday  evenings  from  7:15  p.  M.  to 
7:30  P.  M.  He  said  both  of  the  programs 
this  week  will  be  in  English,  but  arrange- 
ments are  being  made  to  broadcast  a 
Polish  program  on  either  Friday  or  Satur- 
day of  next  week  and  hopes  to  have  Leo 
Kryzki,  speak.  Kryzki  is  Vice-President 
of  the  Amalgamated  Clothing  Workers, 
one  of  the  International  Unions  that  com- 
poses the  Committee  for  Industrial 
Organization. 

Frankensteen  announced  that  Inter- 
national President  Homer  Martin  of  the 
United  Automobile  Workers  visited 
Washington  last  week  and  spent  consider- 
able time  with  John  L.  Lewis  and  com- 
pleted arrangements  for  the  International 
Union  of  the  United  Automobile  Workers 
to  join  with  the  Lewis  Committee  for  In- 
dustrial Organization.  He  said  the  United 
Rubber  Workers  has  also  joined  the  Com- 
mittee for  Industrial  Organization  and 
this  makes  12  International  Unions  that 
are  represented  on  the  committee. 

Frankensteen  said  Martin  returned  to 
Detroit  yesterday  but  left  for  Pittsburgh 
today  where  he  will  meet  with  the  organ- 
izers in  the  steel  drive  and  other  members 
of  the  Committee  for  Industrial  Organi- 
zation, for  the  purpose  of  making  definite 
arrangements  to  send  four  or  five  organ- 
izers to  Detroit  and  also  arrange  for  finan- 
cial aid  and  work  out  other  details  in  con- 
nections with  launching  a  drive  in  the 
auto  industry.  Frankensteen  said  he 
understands  that  four  or  perhaps  five 
organizers  from  the  Committee  for  Indus- 
trial Organization  will  be  sent  to  Detroit 
in  about  two  weeks.  Frankensteen  stated 
that  this  coming  organizing  drive  in  the 
auto  industry  will  be  carried  on  under  the 
supervision  and  direction  of  the  Commit- 
tee for  Industrial  Organization. 

In  his  concluding  remarks,  Franken- 
steen stated  that  handbills  have  been  pre- 


172 


APPENDIX 


pared  announcing  a  meeting  to  be  held  at 
Chandler  Park  on  Thursday  evening,  July 
9th  and  explained  that  these  leaflets  will 
be  distributed  around  the  East  Side  plants 
on  Wednesday  and  Thursday.  He  said 
delegates  present  this  evening  who  are 
employed  in  East  Side  shops  might  find 
an  opportunity  to  carry  a  few  of  these 
handbills  inside  and  distribute  them  to 
some  of  their  friends. 

Following  Frankensteen's  talk,  there 
was  some  general  discussion  in  which 
most  of  the  delegates  took  part.  This  was 
to  the  effect  that  the  women  folks  and 
wives  of  union  members  are  not  support- 
ing the  union  properly.  It  was  argued  that 
many  of  the  wives  object  to  their  hus- 
bands attending  meetings,  on  the  grounds 
that  after  the  meetings  are  over  they  visit 
beer  gardens  and  other  amusement  places 
and  do  not  get  home  until  one  or  two 
o'clock  in  the  morning.  During  the  dis- 
cussion, it  was  admitted  that  many  mem- 
bers took  advantage  of  the  union  meet- 
ings to  have  a  "night  out"  and  this  has 
become  known  to  many  of  the  women 
folk,  with  the  result  that  many  members 
complain  that  their  wives  put  up  serious 
objection  whenever  they  want  to  attend  a 
union  meeting. 

Frankensteen  brought  his  discussion  to 
an  end  by  explaining  that  he  will  arrange 
for  a  special  radio  program  for  the  women 
folks  and  explain  to  them  how  necessary 
it  is  for  their  husbands  to  attend  union 
meetings  if  a  successful  organization  of 
auto  workers  is  to  be  set  up. 

James  Foster,  who  has  been  very  active 
in  the  Automotive  Industrial  Workers 
Association,  declared  that  right  now 
would  be  a  very  favorable  time  to  put 
forth  some  real  organizing  efforts  directed 
toward  the  Briggs  employees.  Foster  ex- 
plained that  Briggs  owns  the  Detroit 
Tigers  Baseball  Club  and  if  a  strike 
should  develop  at  the  Briggs  Plant  during 
the  course  of  organization,  then  Navin 


Field  could  be  picketed.  He  said  this  or- 
ganizing drive  of  course  would  have  to 
take  place  during  the  baseball  season.  The 
other  delegates  present  this  evening  ap- 
parently did  not  think  much  of  Foster's 
suggestion  because  no  other  comment  was 
made. 

It  was  very  warm  in  the  hall  this  eve- 
ning  and  many  of  the  delegates  complained 
about  the  heat,  with  the  result  that  Chair- 
man Frankensteen  adjourned  the  meeting 
at  9:30  P.  M. 

SPECIAL  REPORT 
R-C-.D-88 
7—8—36 

The  above  information,  obtained  from 
sources  deemed  reliable,  is  furnished 
without  responsibility  on  the  part  of  this 
company. 


Report  of  Burns  Operative,  Robert  W. 
Coates,  on  a  union  organization  meeting 
which  he  attended,  and  in  which  he  took 
an  active  part: 

PITTSBURGH,  PA., 
(Saturday},  July  lyb,  1933. 
Pittsburgh  Operator  No.  8062 
Pittsburgh  Investigator  C-24  Reports: 

Having  been  instructed  by  Acting 
Manager  D.  R.  S.  to  wait  at  the  Agency 
Office,  I  there  met  Pittsburgh  Investiga- 
tor D-i  and  Mr.  Morrow.  I  was  in- 
structed to  accompany  Investigator  D-i 
to  the  vicinity  of  the  McGeagh  Building 
where  those  identified  with  the  bakery 
industry  were  to  have  a  meeting.  I  was 
instructed  to  endeavor  to  be  admitted  to 
the  meeting  and  ascertain  what  tran- 
spired. 

At  7:30  P.  M.  I  left  the  Agency  Office 
accompanied  by  Pittsburgh  Investigator 
D-i  and  when  at  an  appropriate  distance 
from  the  McGeagh  Building,  we  sepa- 
rated. 


APPENDIX 


Approaching  the  McGeagh  Building,  I 
observed  several  men  who  were  no  doubt 
active  in  unionism,  closely  observing  all 
those  who  were  entering  the  building. 
Watching  my  opportunity  I  managed  to 
go  into  the  building  immediately  in  the 
rear  of  three  other  men  who  had  inquired 
if  there  was  a  meeting  in  the  building. 
The  watcher  at  the  front  of  the  building 
advised  us  the  meeting  was  in  the  room  in 
the  rear  of  the  third  floor  of  the  building. 

I  followed  up  the  stairs  to  the  third 
floor  and  observed  several  men  in  the 
third  floor  hall  closely  observing  all  men 
that  entered  the  rear  room  where  the 
meeting  was  to  be  held. 

After  entering  I  counted  the  number  of 
men  present  and  found  there  were  seventy- 
eight  young  and  older  men  in  the  room. 
Several  of  the  younger  men  especially  ap- 
peared to  be  truck  drivers.  In  fact  the 
majority  appeared  to  be  those  employed 
in  distribution  rather  than  in  the  manu- 
facturing end. 

Seated  up  front  at  the  chairman's  table 
was  an  Irishman  whom  they  all  appeared 
to  refer  to  as  Dan,  although  one  man 
present  in  the  hall  advised  me  he  was  Mr. 
Metche.  Seated  to  the  left  of  the  chair- 
man's table  was  a  man  they  all  addressed 
as  Sam,  a  Jew,  possibly  Russian  Jew,  who 
has  evidently  been  in  this  country  for 
some  time,  as  he  spoke  very  good  English, 
had  exceptionally  good  diction,  and  a  very 
forceful  fellow  of  about  35  years  of  age. 
Later  I  learned  that  Sam  was  the  Busi- 
ness Agent  and  that  Metche  was  Presi- 
dent of  the  Bakers  Union. 

At  the  opening  of  the  meeting  Metche 
addressed  the  men  as  non-union  men  and 
stated  that  he  was  very  much  gratified  at 
seeing  so  many  present.  Metche  went  on 
to  explain  that  he  and  Sam  had  been  very 
active  in  the  past  two  weeks  in  trying  to 
interview  as  many  men  employed  in 
bakeries  about  Pittsburgh  as  they  could 
and  that  he  did  not  expect  to  see  so  many 


present.  (At  this  time  there  were  several 
more  men  entering  the  room.  Later  addi- 
tions brought  the  total  number  to  over 
one  hundred  men  present.) 

Metche  advised  the  men  that  the  In- 
dustrial Recovery  Act  recently  passed 
had  made  it  possible  for  the  men  to  secure 
their  rights  and  proper  recognition  with 
their  employers  and  that  they  desired  to 
unionize  the  baking  industry  as  a  whole, 
taking  in  every  one  employed  about  the 
shop  whether  he  be  a  truck  driver,  baker 
or  shop  man,  salesman,  and  in  fact  all 
those  employed  in  the  baking  industry. 
He  stated  that  he  observed  one  shop 
represented  one  hundred  per  cent  and  I 
inquired  from  one  of  the  men  and  learned 
that  he  had  reference  to  the  men  from  the 
Hankey  Baking  Company. 

After  the  usual  organizers  speech 
pointing  out  to  the  men  what  benefits 
unionism  would  give  them  if  they  joined, 
Metche  introduced  the  Business  Agent  as 
"Sam"  the  Business  Agent,  who  would 
also  address  the  men.  There  appeared  to 
be  some  significance  in  the  manner  in 
which  reference  was  made  to  this  man  and 
that  by  addressing  them  by  their  Chris- 
tian name. 

Business  Agent  Sam  then  addressed  the 
men  urging  them  to  join  the  union.  He 
stated  the  initial  cost  would  be  $5.00  to 
join  and  $2.25  per  month  dues  for  bene- 
ficiary members  and  $1.40  per  month  for 
non-beneficiary  members.  In  case  of  death 
of  a  beneficiary  member,  his  beneficiary 
would  receive  $300.00,  and  in  case  his 
wife  died,  he  would  receive  $75.00. 

Sam  stated  there  had  been  deep  inroads 
made  in  the  ranks  of  the  union  bakers  and 
that  he  had  learned  the  Master  Bakers 
were  preparing  their  Code  to  submit  to 
Gen.  Hugh  S.  Johnson,  Recovery  Ad- 
ministrator and  that  they  had  decided  on 
asking  for  a  forty  hour  week  with  a  mini- 
mum wage  of  $20.00  per  week  with  pro- 
portionate wages  accordingly  and  he 


174 


APPENDIX 


wanted  all  the  men  to  join  so  that  the 
Bakers  Union  could  show  at  least  75% 
unionism  and  demand  a  thirty  hour  week 
with  a  $30.00  minimum  wage.  Some  young 
fellow  stated  in  interruption  that  he  only 
earned  twelve  dollars  a  week.  Sam  went 
on  to  explain  to  the  men  that  he  felt  con- 
fident that  if  a  sufficient  number  joined  it 
would  only  be  a  matter  of  another  month 
when  they  could  demand  this  or  close  up 
the  shops. 

Sam  then  urged  the  men  to  come  for- 
ward and  sign  a  pink  application  blank 
to  join  the  union.  The  men  did  not  rush  to 
do  so  and  considerable  comment  surged 
through  the  men  in  the  room.  I  suggested 
to  one  man  who  remarked  to  me  that  he 
did  not  know  whether  there  was  anyone 
from  his  shop  that  was  spotting  and  he 
was  not  going  to  take  any  chances  on 
losing  his  job  as  he  had  not  been  working 
very  steady.  I  suggested  that  he  suggest 
that  the  application  blanks  be  passed 
around  to  each  man  in  the  room  and  let 
him  take  it  home  and  decide  to  do  what 
he  wanted.  This  was  overheard  by  a 
young  man,  who  took  it  up  from  the  floor 
and  this  was  done.  I  received  one  of  the 
blanks. 

At  this  juncture  the  men  were  display- 
ing considerable  concern  over  the  initia- 
tion fee  demanded  and  there  was  consid- 
erable discussion  among  the  different 
groups  and  mixing  in  I  suggested  that  as  I 
had  only  worked  eight  days  out  at  Hallers 
I  did  not  have  the  money  to  spare  but 
that  my  idea  would  be  to  take  all  the  old 
union  members  in  that  had  dropped  out 
free  of  any  back  dues  and  all  the  new  mem- 
bers at  some  nominal  sum  such  as  a  dollar 
in  order  to  get  each  and  every  man.  One 
man  who  is  very  likely  a  union  man  ad- 
vised me  that  my  suggestion  would  have 
to  go  before  the  executive  board.  I  argued 
my  point  and  stated  that  if  they  want  to 
get  all  the  men  in  my  idea  would  not  work 
a  hardship  on  those  like  myself  who  had 


been  out  of  employment  so  long,  also 
pointing  out  that  this  was  labor's  oppor- 
tunity with  the  cooperation  of  the  govern- 
ment that  the  labor  movement  has  never 
had  in  its  history.  My  point  seemed  to 
carry  and  the  union  men  took  the  matter 
up  with  Sam  and  Sam  came  to  my  chair 
and  pointed  out  that  funds  were  needed  to 
defray  expenses.  I  offset  this  by  stating 
that  it  did  not  cost  near  as  much  to  repre- 
sent a  million  men  than  it  did  a  thousand 
as  quicker  results  can  be  obtained  if  the 
initiation  expense  was  totally  cut  out  as  it 
was  quantity  in  numbers  that  was  re- 
quired now  in  a  very  limited  time  and 
that  when  the  men  did  sign  up  strong  to 
say  85  or  90%  it  would  only  be  a  month 
when  the  dues  would  be  pouring  in  and 
the  desired  result  would  be  the  same,  re- 
gardless as  to  whether  the  $5.00  was  paid 
in  or  not. 

Sam  got  my  point  and  then  advised  the 
men  that  if  they  could  not  spare  the  $5.00 
to  turn  in  $1.00  with  their  application  and 
he  would  take  the  matter  up  with!  the 
executive  board  and  know  more  about 
what  their  action  would  be  at  the  next 
meeting  to  be  held  the  first  week  in  Au- 
gust. This  went  over  pretty  good  and  an 
elderly  man  paid  in  one  dollar  for  himself 
and  five  dollars  for  five  others.  When 
Sam  saw  that  this  was  going  over  so  well 
he  again  came  to  my  chair  and  asked  me 
for  my  application  and  I  advised  him  of 
my  financial  circumstances  pointing  out 
to  him  that  as  I  had  just  been  employed  at 
Hallers  Bakery  only  eight  days  ago  and 
did  not  know  all  the  men  and  was  afraid 
there  might  be  someone  spotting  in  the 
room,  I  would  rather  mail  my  application 
in.  I  advised  Sam  there  was  no  doubt  in 
my  mind  that  several  others  felt  just  like 
I  did  and  Sam  then  went  on  to  declare  to 
all  the  men  that  another  good  point  had 
been  brought  up  and  that  while  arrange- 
ments had  been  made  to  stop  any  spotters 
coming  to  the  meeting  and  he  was  con- 


APPENDIX 


I7S 


fident  there  were  none  present,  it  was 
possible  there  were  men  in  the  room  who 
desired  to  join  and  were  afraid  they 
might  lose  their  jobs  but  if  they  desired  to 
do  so  they  could  fill  out  their  own  applica- 
tion blank  and  mail  it  to  him  and  he  as- 
sured all  those  present  that  he  and  no  one 
else  would  know  who  joined  until  the  or- 
ganization was  complete,  and  the  records 
then  turned  over  to  their  secretary,  to  be 
elected  later  by  them. 

Sam  and  Metche  finally  enlisted  what  I 
would  estimate  about  forty  members  and 
at  the  $1.00  fee  but  it  is  quite  likely  that 
at  least  another  20%  more  would  sign 
their  application  and  mail  it  in. 

During  the  filling  out  of  the  applica- 
tions the  men  milled  about  the  room  and  I 
met  Sam  later  when  he  inquired  of  me  as 
to  my  name.  I  gave  him  a  name  and  ad- 
vised him  that  I  would  very  likely  send  in 
my  name,  but  desired  more  secrecy  as  I 
did  not  wish  to  lose  my  job,  which  ap- 
peared to  satisfy  him.  Sam  states  he  was 
well  pleased  with  what  applications  he 
had  received  and  looked  for  a  large  meet- 
ing the  first  week  in  August. 

Metche  then  addressed  the  men  advis- 
ing them  that  while  they  could  take  what 
papers  they  had  received  home  with 
them,  he  desired  that  all  the  men  keep  it 
very  confidential  as  to  what  had  gone  on 
tonight  and  not  by  any  chance  discuss  the 
meeting  in  their  shops  as  he  wanted  all  the 
men  to  join  and  t>hat  much  better  results 
could  be  obtained  if  the  matter  were  kept 
secret  until  the  shops  were  fully  organized. 
He  stated  further  that  he  desired  each 
man  to  work  for  a  100%  organization  and 
urged  the  men  to  bring  some  new  men  to 
the  next  meeting. 

Metche  further  stated  that  organization 
work  was  going  on  all  over  the  country  in 
all  trades  to  enable  their  representatives 
of  each  respective  industry  to  show  a 
strong  hand  when  the  code  for  each  indus- 
try is  finally  settled  on  and  it  behooves 


every  wage  earner  to  join  now  and  show 
a  united  front  in  each  separate  industry. 

Each  man  present  w?»«?  urged  to  read  the 
daily  papers  about  the  Industrial  Re- 
covery Act  and  see  for  himself  what  a 
wonderful  opportunity  the  wage  earner 
has  today  which  he  has  never  had  before, 
describing  the  Industrial  Recovery  Act  as 
a  new  "  Bill  of  Rights." 

By  this  time  several  groups  of  men  were 
leaving  the  room  and  continuing  on  down- 
stairs and  I  went  down  to  the  front  of  the 
building  where  I  met  several  congregated 
about  the  doorway.  Mixing  in  the  discus- 
sion I  could  readily  observe  that  Sam  and 
Metche  had  planted  strong  arguments  in 
fertile  ground.  While  taking  part  in  the 
discussion  Sam  came  down  looking  and 
inquiring  for  a  fellow  he  called  "Lampel" 
who  works  out  at  Hallers  Bakery.  Not 
knowing  Lampel  I  told  Sam  so,  where- 
upon he  stated  he  was  very  anxious  to 
have  seen  him  before  he  got  away,  indi- 
cating he  was  at  the  meeting  and  had  left. 
I  took  this  opportunity  to  properly  intro- 
duce myself  and  compliment  Sam  in  his 
masterful  manner  in  handling  his  subject 
tonight,  but  while  Sam  shook  hands  with 
me  he  stated  he  was  "  Sam  "  and  desired  to 
see  me  at  the  next  meeting.  I  told  him 
that  I  expected  to  be  present  if  I  was  still 
working  and  hoped  he  had  success  in  se- 
curing 1 00%  organization.  Sam  stated  he 
was  very  grateful  for  the  attendance  to- 
night and  someone  in  the  crowd  asked 
Sam  where  he  was  from  and  Sam  replied 
"somewhere  in  Europe"  and  grinned. 

I  joined  several  of  the  men  in  having 
refreshments  at  a  nearby  restaurant  and 
observed  Pittsburgh  Investigator  D-i  in 
the  vicinity.  Later  I  left  the  vicinity  of  the 
McGeagh  Bldg.  and  joined  Investigator 
D-i  when  we  both  reported  in  person  to 
Mr.  Morrow  at  his  residence  on  Union 
Ave.,  N.  S. 

Mr.  Morrow  instructed  me  to  report  at 
their  office  Monday  morning  at  io:oc 


Refreshments i .  20 

Car  fare .10 


Time:  One  day 12.00 


MH/ 


$14-3° 


—  Fill,  pp.  3119-3122 


176  APPENDIX 

o'clock  when  he  desired  me  to  confer  with 
him  and  others  regarding  future  plans. 

I  left  Mr.  Morrow  at  11:00  P.  M.,  re- 
turned to  my  room  where  I  was  engaged 
until  3:00  A.  M.  preparing  this  report. 
After  doing  so  I  discontinued  for  the  day. 
Expenses: 

Supper  and  lunch $i .  oo 

D. 

Members  of  Employers'  Association  of  Akron  and  amounts  of  their  contributions, 
1933  to  1936: 

1933  *934  1935  1936 

B.  F.  Goodrich  Co. 

500  S.  Main  Street $6220.70      $9216.01     $10868.64    $11117.52 

Goodyear  Tire  &  Rubber  Co. 

1144  E.  Market  Street $6876.72    $11266.69    $139%%-31     $I3792.oo 

Firestone  Tire  &  Rubber  Co. 

1278  S.  Main  Street $4372.45      $7271.00    $9152.96        $9419.44 

General  Tire  &  Rubber  Co. 

E.  Market  &  Holmes  St $728.55      $1047.72      $1284.56      $1222.64 

Mohawk  Rubber  Co. 

1235  Second  Avenue $279.05        $293.35        $206.30        $158.90 

American  Hard  Rubber  Co. 

Seiberling  Street $207.30        $215.75        $220.45        $246.70 

Quaker  Oats  Co. 

102  S.  Howard  Street $342 . 65        $367 . 20        $342 . 25        $347 . 35 

Robinson  Clay  Products  Co. 

1 1 oo  2nd  National  Bldg $6.00          $33-5°          $36.00          $36.00 

Akers  &  Harpham  Co. 

1065  Dublin  Street $3.00  $5-75  $6.00  $3.00 

Thos.  Phillips  Co. 

23  W.  Exchange  Street $50.50          $58.00          $60.10          $60.00 

Carmichael  Construction  Co. 

148  E.  Miller  Avenue $8.35  $8.00  None  None 

Imperial  Electric  Co. 

64  Ira  Avenue $26.75          $26.50          $30.90          $39.40 

National  Rubber  Machinery  Co. 

917  Sweitzer  Avenue $123.30        $126.10          $82.35  $85.25 

Akron  Equipment  Co. 

E.  Exchange  &  Annadale $21.75          $34-25          $3°-9°          $32.40 

Mechanical  Mold  &  Machine  Co. 

946  S.  High  Street $53 .15          $57.65          $64.20          $63.70 

Akron  Standard  Mold  Co. 

1624  Englewood  Avenue $84.80          $90.75          $85.40          $82.75 


APPENDIX 


Walter  F.  Kirn 

366  S.  Broadway 

Resigned  February,  1933: 
Steigner-Koch  Co. 

99  W.  Market  Street. 
Resigned  June,  1936: 

Franklin  Brothers  Co. 
49  E.  Glenwood  Ave. 


|2. 60 


$.40 


|6. 65 


177 


•45 


19.40         $10.55 


I  hereby  certify  that  the  above  is  a  true  and  correct  list  of  the  members  of  The  Em- 
ployers' Association  of  Akron  &  Vicinity  from  January  ist,  1933,  up  to  the  present  date, 
and  that  the  amounts  set  opposite  their  names  for  the  years  mentioned  are  the  true  and 
correct  amounts  contributed  by  them  respectively  to  the  Association  in  dues  for  said 
^ears  and  that  there  have  been  no  other  contributions. 

H.  C.  PARSONS,  Sec'y-Treas. 


Sample  detailed  report  sent  by  The 
Goodyear  Co.  to  Mr.  Cowdrick,  secretary 
of  the  special  conference  committee: 

THE  GOODYEAR  TIRE 
&  RUBBER  COMPANY, 
Akron,  Ohio,  June  12, 1036. 
Mr.  E.  S.  COWDRICK, 
30  Rockefeller  Plaza, 
New  York  City,  N.  T. 
DEAR  MR.  COWDRICK:  We  have  sent 
you  some  newspaper  reports  the  last  few 
days  covering  reports  of  the  labor  situa- 
tion at  Gadsden  and  its  effect  upon  our 
local  situation  here  in  Akron. 

We  have  just  received  a  report  from  a 
representative  of  our  management  in 
Gadsden  on  this  situation  which  we  be- 
lieve will  be  of  interest. 

Dalrymple,  President  of  the  Rubber- 
workers  Union,  talked  with  our  local 
superintendent  in  Gadsden  late  Friday 
(June  5)  and  apparently  was  satisfied 
with  the  explanation  given  him  regarding 
the  dismissal  of  two  union  employees.  Both 
of  these  dismissals  were  caused  by  viola- 
tion of  company  rules.  One  employee  had 


—  V1L1,  pp.  3202, 3203 

spoiled  considerable  stock  and  had  tried 
to  cover  up  same.  The  other  one  had  been 
repeatedly  warned  as  to  garnisheements, 
but  had  persisted  in  not  looking  after  his 
outside  financial  affairs,  and  just  recently 
was  found  guilty  of  some  other  loose  finan- 
cial deals  in  regards  to  issuing  of  checks. 

While  in  Gadsden,  Dalrymple  called  a 
meeting  in  the  Court  House,  at  which  he 
was  the  chief  speaker.  The  meeting  was 
attended  by  a  large  group,  including  most 
of  the  union  people  in  town.  Of  this  union 
organization  there  were  a  large  number 
from  one  of  the  local  textile  plants  who 
were  out  of  a  job.  There  also  were  some 
members  present  from  a  steel  company,  as 
well  as  some  from  our  own  plant. 

The  statement  was  made  by  the  speaker 
that  there  were  a  number  of  dissatisfied 
workers  in  the  Goodyear  plant  and  when 
he  was  asked  from  the  floor  who  was  dis- 
satisfied and  who  had  asked  him  to  come 
to  Gadsden,  his  explanation  was  met  by  a 
shower  of  eggs,  tomatoes  and  rocks.  A 
free-for-all  fight  was  precipitated  and  a 
few  knives  and  guns  were  drawn  by  some 
of  the  radical  union  members.  No  one 
was  seriously  injured,  however,  and  the 


APPENDIX 


Sheriff  escorted  Dalrymple  out  the  back 
entrance  of  the  Court  House. 

As  he  came  down  the  steps  and  started 
across  the  street  a  gang  of  men  rushed  up, 
and  between  this  point  and  his  hotel  he 
was  rather  roughly  treated. 

His  wife  was  at  the  hotel  and  they  were 
told  to  leave  the  town  and  not  return  to 
Alabama  again. 

During  the  mixup  one  of  the  union  men 
had  flourished  his  gun,  and  some  of  the 
non-union  workers,  when  he  reported  for 
work  Monday  morning,  asked  if  he  was 
still  armed.  When  he  replied  that  he  was 
not,  one  of  the  men  in  the  shop  proceeded 
to  give  him  a  good  beating.  This  precipi- 
tated some  difficulty,  and  when  the  super- 
vision were  able  to  break  up  the  trouble, 
they  escorted  a  number  of  the  principals 
to  the  gatehouse  to  give  them  a  chance  to 
cool  off. 

After  investigation,  the  supervision 
found  there  were  other  union  men  on  the 
other  shift  who  were  going  to  be  given  the 
same  treatment  by  non-union  workers, 
and  so  these  clock  cards  were  pulled. 

14  employes  out  of  a  total  of  20  were 
given  their  pay.  This  14  includes  the  origi- 
nal two  who  were  dismissed.  The  other  12 
were  paid  off  with  the  understanding  that 
their  working  in  the  plant  might  cause 
trouble  and  they  were  advised  to  stay  out 
for  some  time,  but  they  were  not  formally 
discharged. 

Federal  and  State  investigators  have 
been  to  Gadsden  and  yesterday  afternoon 
we  were  visited  by  a  committee  of  the 
Rubberworkers'  Union  to  discuss  this 
Gadsden  difficulty  and  also  the  dismissal 
of  a  man  at  the  Kelly  Springfield  Plant. 

At  this  meeting  we  were  presented  with 
an  agreement  similar  to  the  one  which 
was  discussed  at  the  settlement  of  the 
strike  here  in  Akron.  Also,  there  was 
tacked  on  it  a  clause  that  we  would  agree 
to  pay  the  same  rates  of  pay  in  both 
Gadsden  and  Cumberland  that  we  are 


paying  in  Akron.  The  management  in- 
formed the  Committee  that  they  were 
not  in  a  position  to  consider  this  agree- 
ment but  would  investigate  the  cases  of 
the  men  at  the  Gadsden  Plant ,  as  well 
as  the  one  at  Kelly  Springfield. 

This  situation,  of  course,  has  been  the 
cause  of  some  difficulty  here  in  Akron. 
It  resulted  in  complete  cessation  of  opera- 
tions Wednesday  midnight.  There  was 
some  further  trouble  in  the  Plant  II  Pit 
because  the  union  workers  would  not 
work  with  some  of  the  non-union  employes 
in  their  department. 

The  situation  yesterday  was  rather 
tense  because  of  the  announcement  of  the 
future  policy  that  no  minimum  wage 
would  be  paid  in  the  future  to  anyone 
whose  earnings  were  affected  by  a  sit- 
down,  nor  would  minimum  wage  be  paid 
to  any  employee  who  reported  for  work 
and  were  unable  to  work  because  of  a 
sitdown. 

At  the  meeting  yesterday  afternoon, 
however,  the  union  committee  discussed 
this  new  policy  with  the  management  and 
seemed  to  understand  it  and  abide  by  it  if 
we  would  agree  to  clean  up  a  couple  of 
wage  matters  caused  by  the  difficulty  on 
Thursday  morning  at  Plant  II.  This  was 
cleaned  up  to  the  satisfaction  of  all  con- 
cerned and  we  got  by  last  night  without 
any  difficulty. 

We  will  keep  you  informed  as  to  any 
further  developments. 

Yours  very  truly, 

L.  A.  HURLEY, 
Manager,  Inter  Plant  Relations, 

L  A  Hurley 

TA 

—  VIII,  pp.  3206, 3207 

F. 

Frankensteen's  account  of  the  attack 
on  him  by  Ford  service  men: 

Walter  and  I  walked  up  and  photog- 
raphers called  and  asked  to  take  a  picture. 


APPENDIX 


179 


They  took  a  picture  of  the  three  of  us, 
Walter,  Jack  Kennedy  and  myself.  Im- 
mediately after  the  picture  was  taken  a 
fellow  came  over  and  said,  "you  are  on 
Ford  property,  get  the  hell  off  of  here." 
We  started  to  walk  for  the  steps  to  leave, 
but  I  hadn't  taken  three  steps  when  I  felt 
a  crack  in  the  back  of  the  neck.  I  turned 
around  and  as  I  turned  more  blows  were 
struck.  As  I  started  to  defend  myself  they 
got  me  on  all  sides.  There  seemed  to  be 
about  25  men  working  on  me. 

Participating  in  the  attack  on  the 
bridge  were  about  1 50  men.  I  was  knocked 
down,  but  someone  grabbed  my  coat  from 
the  back  and  threw  it  over  my  head.  They 
knocked  me  down  again,  turned  me  over 
on  my  side  and  began  to  kick  me  in  the 
stomach.  When  I  would  protect  my  side 
they  would  kick  my  head. 

One  of  the  attackers  would  say,  "That 
is  enough,  let  him  go."  Then  they  would 
pick  me  up  and  stand  me  on  my  feet,  but 
I  was  no  sooner  on  my  feet  than  they 
would  knock  me  down  again.  This  went  on 
about  five  times.  They  let  me  lie  there  for 
a  while;  during  that  time  every  once  in  a 
while  someone  would  grind  his  heel  into 
me.  They  pulled  my  legs  apart  and  kicked 
me  in  the  scrotum.  By  this  time  they  had 
me  driven  to  the  steps,  leading  down  on 
the  east  side  of  the  bridge.  As  I  started 
down  the  first  step  I  was  again  knocked 
down.  They  picked  me  up  and  bounced 


me  from  one  step  to  the  next.  I  was 
bounced  on  each  step.  As  I  went  down 
four  or  fivej  steps  I  came  to  the  land- 
ing. 

There  were  four  or  five  more  men  who 
proceeded  to  administer  the  blows  from 
that  place.  This  continued  until  they  had 
me  on  the  cinders  by  the  street  car  tracks 
on  the  south  side  of  the  fence.  At  that 
point  a  street  car  approached.  The  men 
began  bouncing  me  on  the  cinders,  pick- 
ing me  up  and  knocking  me  down  on  the 
cinders. 

I  lost  consciousness  while  on  the  bridge, 
but  when  they  stood  me  on  my  feet  it 
seemed  to  restore  my  faculties.  I  knew 
what  was  going  on  but  could  not  speak. 

They  said,  "Go  get  your  coat."  My 
coat  was  lying  on  the  street  car  tracks.  A 
big  fat  fellow,  a  man  I  could  identify 
easily,  as  his  face  is  very  pronounced  in 
my  mind,  said,  "Go  get  your  coat."  As  I 
went  to  pick  up  my  coat  I  was  again 
knocked  down.  That  was  the  last  time 
that  I  was  knocked  down.  By  this  time  I 
had  approached  the  end  of  the  fence 
where  we  were  picked  up  by  newspaper 
men  who  drove  us  to  a  physician's  office. 

During  this  time  the  Dearborn  police 
who  were  present  made  no  effort  to  fore- 
stall this  action. 

United  Automobile  Worker •, 
May  29,1937. 
(Reprinted  by  permission.) 


i8o 


APPENDIX 


G. 

Description  of  suppressed  Paramount 
News  Reel  of  the  "Memorial  Day  Mas- 
sacre" in  South  Chicago: 

The  St.  Louis  Post-Dispatch  was  the  first  newspaper  in  the  United 
States  to  print  the  following  account  and  thereafter  it  was  reprinted  by 
many  other  newspapers. 

Senators  See  Suppressed 

Movie  of  Chicago  Police 

Killing  Steel   Strikers 

Brutal  Scenes  of  Memorial  Day  Vividly  Shown  in 

News  Reel 


Members  of  Investigating  Com- 
mittee Shocked  at  Picture  of 
Officers  Firing  Pointblank 
Into  Crowd  of  Marchers 


PURSUED,  CLUBBED 
DOWN  AS  THEY  RUN 


Audience  Views  Close-Ups  of 
Encounter,  Accompanied  by 
Sounds  of  Shots  and  Screams 
of  Wounded  Demonstrators 


Post-Dispatch  Bureau. 

201-205  Kellogg  Bldg. 
(Copyright,  1937,  Pulitzer  Publishing  Co.) 

WASHINGTON,  June  16.  —  Five  agents 
of  the  La  Follette  Civil  Liberties  Com- 
mittee, headed  by  Robert  Wohlforth,  the 
committee's  secretary,  arrived  in  Chicago 
yesterday  to  begin  an  investigation  of  the 


tragic  events  of  Memorial  day,  when  nine 
persons  were  killed  or  fatally  wounded  by 
city  police  in  smashing  an  attempt  by 
steel  strike  demonstrators  to  march  past 
the  Republic  Steel  Co.  plant  in  South 
Chicago. 

Appearance  of  the  committee's  agents 
on  the  scene  coincided  with  the  death  of 
the  ninth  victim,  a  iy-y  ear-old  boy  re- 
ported to  have  joined  the  pickets  in  the 
hope  of  getting  a  job  in  the  mill  after  set- 
tlement of  the  strike. 

It  was  learned  today  that  the  commit- 
tee's decision  to  proceed  with  the  inquiry 
was  hastened  by  the  private  showing  here 
last  week  of  a  suppressed  news  reel,  in 
which  the  police  attack  on  the  demon- 
strators is  graphically  recorded.  The  com- 
mittee obtained  possession  of  the  film  in 
New  York,  after  its  maker,  the  Para- 
mount Co.,  had  announced  that  it  would 
not  be  exhibited  publicly,  for  fear  of  in- 
citing riots  throughout  the  country. 


APPENDIX 


181 


Senators  Shocked  by  Scenes 

The  showing  of  the  film  here  was  con- 
ducted with  the  utmost  secrecy.  The  audi- 
ence was  almost  limited  to  Senators  La 
Follette  (Prog.),  Wisconsin,  and  Thomas 
(Dem.),  Utah,  who  compose  the  commit- 
tee, and  members  of  the  staff.  Those  who 
saw  it  were  shocked  and  amazed  by  scenes 
showing  scores  of  uniformed  policemen 
firing  their  revolvers  pointblank  into  a 
dense  crowd  of  men,  women  and  children, 
and  then  pursuing  and  clubbing  the  sur- 
vivors unmercifully  as  they  made  frantic 
efforts  to  escape. 

The  impression  produced  by  these  fear- 
ful scenes  was  heightened  by  the  sound 
record  which  accompanies  the  picture, 
reproducing  the  roar  of  police  fire  and  the 
screams  of  the  victims.  It  was  run  off 
several  times  for  the  scrutiny  of  the  in- 
vestigators, and  at  each  showing  they  de- 
tected additional  instances  of  "frightful- 
ness."  It  is  expected  to  be  of  extraordinary 
value  in  identifying  individual  policemen 
and  their  victims.  The  film  itself  evidently 
is  an  outstanding  example  of  camera  re- 
porting under  difficult  conditions. 

Description  of  Picture 

The  following  description  of  the  picture 
comes  from  a  person  who  saw  it  several 
times,  and  had  a  particular  interest  in 
studying  it  closely  for  detail.  Its  accuracy 
is  beyond  question. 

The  first  scenes  show  police  drawn  up  in 
a  long  line  across  a  dirt  road  which  runs 
diagonally  through  a  large  open  field  be- 
fore turning  into  a  street  which  is  parallel 
to,  and  some  200  yards  distant  from,  the 
high  fence  surrounding  the  Republic  mill. 
The  police  line  extends  40  or  50  yards  on 
each  side  of  the  dirt  road.  Behind  the  line, 
and  in  the  street  beyond,  nearer  the  mill, 
are  several  patrol  wagons  and  numerous 
reserve  squads  of  police. 

Straggling  across  the  field,  in  a  long, 
irregular  line,  headed  by  two  men  carrying 


American  flags,  the  demonstrators  are 
shown  approaching.  Many  carry  placards. 
They  appear  to  number  about  300  —  ap- 
proximately the  same  as  the  police  —  al- 
though it  is  known  that  some  2000  strike 
sympathizers  were  watching  the  march 
from  a  distance. 

Marchers  Halted  by  Police 

A  vivid  close-up  shows  the  head  of  the 
parade  being  halted  at  the  police  line.  The 
flag-bearers  are  in  front.  Behind  them  the 
placards  are  massed.  They  bear  such  de- 
vices as:  "Come  on  Out  —  Help  Win  the 
Strike";  "Republic  vs.  the  People,"  and 
"C  I  O."  Between  the  flag-bearers  is  the 
marchers'  spokesman,  a  muscular  young 
man  in  shirt-sleeves,  with  a  C  I  O  button 
on  the  band  of  his  felt  hat. 

He  is  arguing  earnestly  with  a  police 
officer  who  appears  to  be  in  command. 
His  vigorous  gestures  indicate  that  he  is 
insisting  on  permission  to  continue 
through  the  police  line,  but  in  the  general 
din  of  yelling  and  talking  his  words  cannot 
be  distinguished.  His  expression  is  serious, 
but  no  suggestion  of  threat  or  violence  is 
apparent.  The  police  officer,  whose  back  is 
to  the  camera,  makes  one  impatient  ges- 
ture of  refusal,  and  says  something  which 
cannot  be  understood. 

Then  suddenly,  without  apparent 
warning,  there  is  a  terrific  roar  of  pistol 
shots,  and  men  in  the  front  ranks  of  the 
marchers  go  down  like  grass  before  a 
scythe.  The  camera  catches  approxi- 
mately a  dozen  falling  simultaneously  in 
a  heap.  The  massive,  sustained  roar  of  the 
police  pistols  lasts  perhaps  two  or  three 
seconds. 

Police  Charge  With  Sticks 

Instantly  the  police  charge  on  the  march- 
ers with  riot  sticks  flying.  At  the  same 
time  tear  gas  grenades  are  seen  sailing 
into  the  mass  of  demonstrators,  and  clouds 
of  gas  rise  over  them.  Most  of  the  crowd 


182 


APPENDIX 


is  now  in  flight.  The  only  discernible  case 
of  resistance  is  that  of  a  marcher  with  a 
placard  on  a  stick,  which  he  uses  in  an  at- 
tempt to  fend  off  a  charging  policeman. 
He  is  successful  for  only  an  instant. 
Then  he  goes  down  under  a  shower  of 
blows. 

The  scenes  which  follow  are  among  the 
most  harrowing  of  the  picture.  Although 
the  ground  is  strewn  with  dead  and 
wounded,  and  the  mass  of  the  marchers 
are  in  precipitate  flight  down  the  dirt 
road  and  across  the  field,  a  number  of  in- 
dividuals, either  through  foolish  hardi- 
hood, or  because  they  have  not  yet  real- 
ized what  grim  and  deadly  business  is  in 
progress  around  them,  have  remained  be- 
hind, caught  in  the  midst  of  the  charging 
police. 

In  a  manner  which  is  appallingly  busi- 
nesslike, groups  of  policemen  close  in  on 
these  isolated  individuals,  and  go  to  work 
on  them  with  their  clubs.  In  several  in- 
stances, from  two  to  four  policemen  are 
seen  beating  one  man.  One  strikes  him 
horizontally  across  the  face,  using  his  club 
as  he  would  wield  a  baseball  bat.  Another 
crashes  it  down  on  top  of  his  head,  and 
still  another  is  whipping  him  across  the 
back. 

These  men  try  to  protect  their  heads 
with  their  arms,  but  it  is  only  a  matter  of 
a  second  or  two  until  they  go  down.  In  one 
such  scene,  directly  in  the  foreground,  a 
policeman  gives  the  fallen  man  a  final 
smash  on  the  head,  before  moving  on  to 
the  next  job. 

In  the  front  line  during  the  parley  with 
the  police  is  a  girl,  not  more  than  five  feet 
tall,  who  can  hardly  weigh  more  than  ico 
pounds.  Under  one  arm  she  is  carrying  a 
purse  and  some  newspapers.  After  the 
first  deafening  volley  of  shots  she  turns, 
to  find  that  her  path  to  flight  is  blocked 
by  a  heap  of  fallen  men.  She  stumbles 
over  them,  apparently  dazed. 

The  scene  shifts  for  a  moment,  then  she 


is  seen  going  down  under  a  quick  blow 
from  a  policeman's  club,  delivered  from 
behind.  She  gets  up,  and  staggers  around. 
A  few  moments  later  she  is  shown  being 
shoved  into  a  patrol  wagon,  as  blood  cas- 
cades down  her  face  and  spreads  over  her 
clothing. 

Straggler's  Futile  Flight 

Preceding  this  episode,  however,  is  a 
scene  which,  for  sheer  horror,  outdoes  the 
rest.  A  husky,  middle-aged,  bare-headed 
man  has  found  himself  caught  far  behind 
the  rear  ranks  of  the  fleeing  marchers. 
Between  him  and  the  others,  policemen 
are  as  thick  as  flies,  but  he  elects  to  run 
the  gantlet.  Astonishingly  agile  for  one  of 
his  age  and  build,  he  runs  like  a  deer, 
leaping  a  ditch,  dodging  as  he  goes.  Sur- 
prised policemen  take  hasty  swings  as  he 
passes  them.  Some  get  him  on  the  back, 
some  on  the  back  of  the  head,  but  he 
keeps  his  feet,  and  keeps  going. 

The  scene  is  bursting  with  a  frightful 
sort  of  drama.  Will  he  make  it?  The  sus- 
pense is  almost  intolerable  to  those  who 
watch.  It  begins  to  look  as  if  he  will  get 
through.  But  no!  The  police  in  front  have 
turned  around,  now,  and  are  waiting  for 
him.  Still  trying  desperately,  he  swings  to 
the  right.  He  has  put  his  hands  up,  and  is 
holding  them  high  above  his  head  as  he 
runs. 

It  is  no  use.  There  are  police  on  the 
right.  He  is  cornered.  He  turns,  still  hold- 
ing high  his  hands.  Quickly  the  bluecoats 
close  in,  and  the  night  sticks  fly  —  above 
his  head,  from  the  sides,  from  the  rear. 
His  upraised  arms  fall  limply  under  the 
flailing  blows,  and  he  slumps  to  the  ground 
in  a  twisting  fall,  as  the  clubs  continue  to 
rain  on  him. 

CIO  officers  report  that  when  one  of 
the  victims  was  delivered  at  an  undertak- 
ing establishment,  it  was  found  that  his 
brains  literally  had  been  beaten  out,  his 
skull  crushed  by  blows. 


APPENDIX 


183 


Man  Paralyzed  by  Bullet 

Ensuing  scenes  are  hardly  less  poign- 
ant. A  man  shot  through  the  back  is 
paralyzed  from  the  waist.  Two  policemen 
try  to  make  him  stand  up,  to  get  into  a 
patrol  wagon,  but  when  they  let  him  go 
his  legs  crumple,  and  he  falls  with  his  face 
in  the  dirt,  almost  under  the  rear  step  of 
the  wagon.  He  moves  his  head  and  arms, 
but  his  legs  are  limp.  He  raises  his  head 
like  a  turtle,  and  claws  the  ground. 

A  man  over  whose  white  shirt  front  the 
blood  is  spreading  perceptibly,  is  dragged 
to  the  side  of  the  road.  Two  or  three  po- 
licemen bend  over  and  look  at  him 
closely.  One  of  them  shakes  his  head,  and 
slips  a  newspaper  under  the  wounded 
man's  head.  There  is  a  plain  intimation 
that  he  is  dying.  A  man  in  civilian  cloth- 
ing comes  up,  feels  his  pulse  a  moment 
then  drops  the  hand,  and  walks  away. 
Another,  in  a  uniform  which  might  be 
that  of  a  company  policeman,  stops  an 
instant,  looks  at  the  prostrate  figure,  and 
continues  on  his  way. 

Loading  Wounded  in  Wagons 

The  scene  shifts  to  the  patrol  wagons  in 
the  rear.  Men  with  bloody  heads,  bloody 
faces,  bloody  shirts,  are  being  loaded  in. 
One  who  apparently  has  been  shot  in  the 
leg,  drags  himself  painfully  into  the  pic- 
ture with  the  aid  of  two  policemen.  An 
elderly  man,  bent  almost  double,  holding 
one  hand  on  the  back  of  his  head,  clam- 
bers painfully  up  the  steps  and  slumps 
onto  the  seat,  burying  his  face  in  both 
hands.  The  shoulders  of  his  white  shirt 
are  drenched  with  blood. 

There  is  continuous  talking,  but  it  is 
difficult  to  distinguish  anything,  with  one 
exception  —  out  of  the  babble  there  rises 
this  clear  and  distinct  ejaculation: 

"God  Almighty!" 

The  camera  shifts  back  to  the  central 
scene.  Here  and  there  is  a  body  sprawled 
in  what  appears  to  be  the  grotesque  indif- 


ference of  death.  Far  off  toward  the  outer 
corner  of  the  field,  whence  they  had  come 
originally,  the  routed  marchers  are  still  in 
flight,  with  an  irregular  line  of  policemen 
in  close  pursuit.  It  is  impossible  to  dis- 
cern, at  this  distance,  whether  violence 
has  ended. 

A  policeman,  somewhat  disheveled,  his 
coat  open,  a  scowl  on  his  face,  approaches 
another  who  is  standing  in  front  of  the 
camera.  He  is  sweaty  and  tired.  He  says 
something  indistinguishable.  Then  his 
face  breaks  into  a  sudden  grin,  he  makes  a 
motion  of  dusting  off  his  hands,  and  strides 
away.  The  film  ends. 

H. 

Elaine  Owen's  account  of  the  attack  on 
him  by  T.C.I,  thugs: 

NIGHT  RIDE  IN  BIRMINGHAM 

Birmingham  is  hot.  The  air  breathes 
steel,  coal,  and  oil.  There  are  names  which 
should  be  put  in  parentheses  after  the 
name  Birmingham:  TCI,  Republic  Steel, 
Schloss-Sheffield.  And  the  greatest  of 
these  is  TCI.  TCI  is  Tennessee  Coal  and 
Iron  —  United  States  Steel,  the  House  of 
Morgan. 

In  the  company  houses  they  have  estab- 
lished a  rule  that  workers  with  gardens 
must  not  grow  corn  or  anything  as  high 
as  a  man's  head.  Lights  burn  in  the  spaces 
between  the  houses  all  night.  Don't  be 
found  in  the  streets  after  nine-thirty.  But 
somehow  the  meetings  go  on,  somehow  no 
terror  can  stop  these  meetings.  Although 
it  means  jail  and  beating,  leaflets  appear 
miraculously  on  doorsteps  overnight, 
calling  for  organization  and  struggle. 

It  was  on  my  way  home  that  a  police  car 
went  by  slowly,  two  uniformed  men  in 
the  front  seat.  One  drove,  the  other  swung 
the  spotlight  full  on  me.  Across  the  street 
stood  a  dark  sedan,  men  standing  about 
it,  smoking.  I  walked  on  around  the  cor- 
ner. They  closed  in,  and  the  Ford  sedan 


184 


APPENDIX 


quietly  rolled  in  front  of  us,  the  doors  al- 
ready open.  Not  a  person  in  the  entire 
block.  There  was  no  sense  in  yelling  for 
help. 

Held  firmly  between  them  in  the  back 
of  the  car,  we  shot  past  the  traffic  light 
and  between  the  rows  of  quiet  buildings. 
No  one  said  a  word.  The  windows  were 
closed  tight  and  we  all  sweated  slowly,  out 
of  breath  from  the  tussle,  panting  .  .  . 

Smash!  It  came  —  though  I  had  known 
it  would  come  —  as  a  surprise.  My  lip  was 
numb  as  I  took  a  deep  breath  and  tried  to 
double  up  as  it  came  again.  This  time  it 
caught  me  on  the  cheek  and  I  could  feel 
the  small  surface  of  a  yellow  gold  ring 
crushing  the  skin  against  the  bone. 

There  was  a  salt  taste  to  the  thick 
blood,  and  I  sucked  it  in  with  my  breath. 
A  sharp  knee  dug  into  my  stomach  and  I 
gasped,  straining  to  free  my  arms.  I 
thought  I  would  never  again  get  air  into 
my  lungs,  they  felt  crushed  and  splattered 
all  over  inside  me.  Somehow  I  forgot  my 
face.  It  was  in  my  lap  maybe,  maybe  in 
his  lap,  a  trip-hammer  pounding  on  it,  but 
it  was  no  longer  part  of  me.  I  started  once 
more  in  my  mind  to  go  carefully  through 
each  pocket  in  my  coat,  my  trousers,  the 
one  in  my  shirt.  Suddenly  the  blows  had 
stopped.  The  realization  startled  me  and  I 
opened  my  eyes,  but  only  the  right  one 
would  open  .  .  . 

Another  short  silence,  then  he  moved 
once,  and  his  knees  came  crashing  up  into 
my  face.  "Elaine  Owen,"  he  said.  "Think 
you're  smart,  don't  you.  Elaine  Owen." 
He  dragged  it  out,  gloating  over  the  name, 
over  the  victim,  like  a  jackal. 

"You've  got  too  much  hair  you  God 
damn  nigger  lover,"  he  said,  and  hauled 
me  into  a  headlock,  my  face  in  his  lap. 
His  companion  beat  a  tattoo  on  my  ribs 
with  his  doubled  fists. 

"How  do  you  like  this?"  he  wanted  to 
know,  the  sound  coming  choked  and 
jagged  from  somewhere  deep  in  his  throat 


as  a  handful  of  hair  was  torn  out  and 
stuffed  into  the  thick  blood  clogging  my 
mouth.  I  said  nothing.  There  was  nothing 
to  say  .  .  . 

The  tall  gaunt  one  stood  in  the  shadow 
with  the  dull  gleam  of  a  revolver  at  his 
side,  and  asked  me  quick  short  questions. 
Each  time  he  would  pause  long  enough  for 
the  younger  one  with  the  straight  dark 
brows  and  the  rolling  lips  to  slam  me  in 
the  face.  "He  won't  talk,"  he  said. 
Smash!  "Hasn't  said  a  God  damn  word." 
Smash!  .  .  .  Keep  your  mouth  shut,  I 
said  to  myself  over  and  over,  keep  your 
mouth  shut,  because  they're  going  to 
finish  you  anyway,  and  the  more  you  say, 
the  more  they'll  pound  before  they  finish 
you  off. 

"Throw  him  in  the  river,"  the  fair 
young  one  said,  and  from  somewhere  a 
rope  was  brought. 

It  must  have  been  the  driver,  whom  I 
never  saw  except  for  the  back  of  his  low, 
broad  head  there  in  the  car,  who  pulled 
my  coat  off  from  behind,  while  the  rope 
cut  down  across  my  shoulders,  with  a 
high,  crying  swish  before  the  sharp  slap.  I 
felt  hands  rip  off  the  shirt  strip  by  strip, 
yanking  it  off  the  places  where  blood  had 
begun  to  dry  and  stick.  Someone  was 
ripping  my  trousers  with  a  knife. 

Lying  face  down  on  the  ground  I  pre- 
tended I  had  passed  out,  and  wondered 
why  I  hadn't.  The  rope  cut  across  my 
back  and  at  first  I  clamped  my  teeth 
together  and  it  was  all  right.  After  the 
rope  bit  into  the  open  places  time  after 
time,  I  kept  saying  to  myself,  "Throw 
me  in  the  river,  go  ahead,  bump  me  off." 
It  gave  me  something  to  concentrate  on. 
The  whip  came  down  taking  bits  of  skin 
with  it. 

The  whipping  stopped,  and  a  boot 
crashed  into  my  ribs.  I  rolled  over  and 
slumped  back  on  my  face.  There  was  a 
slight  pause  before  it  began  again.  The 
dark  browed  one  danced  up  and  down  and 


APPENDIX 


185 


whipped  the  rope  around  my  shoulders 
and  body  with  the  force  of  the  blow.  Then 
it  would  be  a  moment  before  he  could  pull 
it  away.  The  raw  pain  surged  through  my 
whole  body,  reached  down  and  pierced  my 
legs  and  my  finger  tips  with  each  slash  of 
the  doubled  rope,  now  wet  with  blood.  I 
gasped  and  gagged  for  the  breath  which 
seemed  burned  out  of  me.  I  kept  my  lips 
tight  shut,  but  I  couldn't  stop  the  grunts 
that  came  with  each  blow  .  .  . 

I  don't  know  when  it  stopped.  I  only 
know  that  I  could  think  of  nothing  but 
the  great  necessity  of  keeping  my  mouth 
shut  and  lying  as  still  as  possible.  I  recall 
more  questions  coming  out  of  the  shadows, 
through  the  whisper  of  the  descending 
rope,  the  eternal  convulsions  of  pain. 
There  was  nothing  more  important  in  the 
world,  nothing  else  in  the  world  at  that 
time,  but  this. 

Vaguely  I  realized  that  it  had  stopped, 
heard  the  car  door  slam,  and  tried  to  lift 
my  head  as  the  tires  dug  into  the  soft  dirt 


and  the  car  spun  away.  I  tried  to  see  the 
license  number  in  the  moonlight,  but  a 
mist  hung  over  my  right  eye.  The  left  was 
useless,  buried  under  great  puffs  of  swollen 
flesh. 

I  let  my  face  drop  forward  again,  and 
hugged  the  earth,  not  wanting  to  slip  off 
into  sleep,  wanting  now  to  go,  somehow, 
back  to  Birmingham,  back  to  the  workers 
there. 

Workers  kept  an  armed  vigil  at  my  bed- 
side. One  metal  worker,  who  had  been  a 
member  of  the  Klan  only  a  few  years  ago, 
brought  his  little  eight-year-old  boy  to 
me.  He  asked  me  to  sit  up  in  bed,  and 
he  bared  the  cuts  and  slashes  that  criss- 
crossed my  body,  back  and  face,  before 
the  child's  eyes. 

" Look  at  that,  sonny,"  he  said.  "That's 
the  company.  That's  what  you  got  to 
learn  to  hate  —  and  fight  agin." 

ELAINE  OWEN,  in  The  New  Republic, 

Aug.  28, 
(Reprinted  by  permission.) 


REFERENCE  NOTES 
To  date  the  record  of  the  hearings  of  the 
La  Follette  Committee  has  been  pub- 
lished in  eight  volumes:  one  covering  the 
preliminary  hearings  and  eight  others 
covering  the  hearings  thereafter.  The 
volume  of  the  preliminary  hearings  is 
referred  to  throughout  as  Prelim  and  the 
succeeding  volumes  are  referred  to  by 
their  Roman  numerals. 


REFERENCE  NOTES 


CHAPTER  I 

Pages  3,  4.  IV,  p.  1262  ff. 
Page  5,  line  10.  Ibid.,  p.  1388. 
Page  6,  line  6.  Prelim.,  p.  72. 

Line  14.  Ibid.,  p.  77  (in  the  larger  figure 
there  was  no  attempt  to  draw  the  line 
between  spies  and  strike-breakers). 
Line  23.  Ibid.,  p.  77. 
Line  28.  VI,  pp.  2175,  2186. 
Page  7,  line  25.  Prelim.,  p.  336  (this  list 
includes  hirers  of  the  strike-breaking 
service  of  detective  agencies). 
Page  8,  line  7.  IV,  pp.  1363-1370. 
Line  16.  V,  pp.  1853-1857. 
Line  27.  I,  pp.  292-294. 

CHAPTER  II 

Page  10,  line  15.  Prelim.,  p.  60. 
Page  II,  line  17.  Jean  E.  Spielman,  The 
Stool-Pigeon    and    the    Open    Shop 
Movement,  p.  39.  American  Publishing 
Co.,  Minneapolis,  1923. 
Line  27.  IV,  p.  1105. 
Page  12,  line  5.  Prelim.,  p.  68. 

Line  24.  IV,  p.  1105. 
Page  13,  line  15.  Ibid.,  pp.  1211,  1213. 
Page  17,  line  13.  V,  pp.  1612-1614. 
Page  18,  line  28.  Ibid.,  pp.  1515,  1516. 
Page  19,  line  29.  Ibid.,  p.  1538. 
Page  20,  line  32.  VI,  pp.  2103,  2104. 

Page  21,  line  8.  VII,  p.  2318. 
Line  21.  Prelim.,  p.  104. 

Page  22,  line  29.  Ibid.,  p.  311. 

Page  23,  line  5.  Ibid.,  pp.  275,  310. 
Line  17.  New  York  Times,  December  17, 

1934- 
Line  22.  IV,  p.  1148. 


Page  24,  line  21.  V,  p.  1616  (my  arrange- 
ment). 

Page  25,  line  8.  IV,  p.  1376. 
Page  26,  line  3.  V,  pp.  1608,  1609. 

Line  20.  National  Labor  Relations  Act 
(48  Stat.  449),  74th  Congress.  Ap- 
proved July  5,  1935. 
Page  27,  line  12.  Prelim.,  p.  275. 
Page  28,  line  4.  II,  p.  686  ff. 

Line  22.  Prelim.,  p.  291. 
Page  29,  line  2.  Ibid.,  p.  292. 

Line  31.  Ibid.,  p.  22. 
Page  30,  line  14.  Ibid.,  p.  318. 

Line  24.  Quoted  in  The  New  Republic, 

March  3,  1937. 
Page  31,  line  2.  Prelim.,  p.  69. 

Line  19.  I,  pp.  71,  72. 
Page  32,  line  22.  Ibid.,  pp.  179,  180. 
Page  33,  line  10.  Ibid.,  p.  205. 

Line  34.  VI,  p.  2069. 

CHAPTER  III 

Page  36,  line  14.  Prelim.,  p.  163. 
Page  39,  line  12.  Ill,  p.  1060. 
Page  41,  line  7.  Ibid.,  p.  1061. 
Page  43,  line  3.  IV,  p.  1432. 
Page  44,  line  2.  Ibid.,  pp.  1432,  1433. 
Page  45,  line  3.  Ibid.,  pp.  1442,  1443. 

Line  13.  Ibid.,  p.  1312. 

Line  16.  Ibid.,  p.  1312. 
Page  46,  line  7.  Ibid.,  p.  1317. 

Line  14.  Ibid.,  p.  1315. 

Line  34.  Ibid.,  pp.  1434,  1435- 
Page  49,  line  18.  Ibid.,  pp.  1436,  1437. 

CHAPTER  IV 
Page  52,  line  20.  I,  p.  2OI. 

Line  36.  IV,  p.  1420. 


187 


i88 


REFERENCE  NOTES 


Page  53,  line  22.  Ibid.,  p.  1273. 

Line  26.  I,  p.  182. 
Page  54,  line  8.  Ibid.,  p.  42. 

Line  14.  Ibid.,  p.  81. 
Page  55,  line  4.  Ibid.,  p.  43. 
Page  57,  line  28.  IV,  pp.  1317-1319. 
Page  59,  line  34.  Ibid.,  pp.  1320-1322. 
Page  60,  line  12.  II,  p.  503. 
Page  61,  line  9.  IV,  p.  1423. 
Page  63,  line  2.  Prelim.,  p.  17. 

Line  23.  Ibid.,  p.  177. 
Page  64,  line  2.  V,  p.  1477. 

Line  34.  IV,  p.  1 149. 
Page  65,  line  18.  Ibid.,  pp.  1377,  1378. 
Page  68,  line  14.  Ibid.,  pp.  1384,  1385. 
Page  69,  line  26.  Ibid.,  pp.  1435,  1436. 

CHAPTER  V 

Page  71,  line  19.  IV,  p.  1348. 
Page  72,  line  14.  Ibid.,  p.  Ill  I  ff. 

Line  19.  II,  pp.  674,  675. 

Line  24.  Ibid.,  p.  494. 
Page  73,  line  7.  Ibid.,  p.  474  ff. 
Page  75,  line  34.  Prelim.,  pp.  334,  335. 

Page  76,  line  20.  IV,  p.  1349  ff. 

Line  28.  Ibid.,  p.  1349  ff. 
Page  77,  line  17.  Ibid.,  pp.  1118,  1119. 
Page  78,  line  24.  Ibid.,  p.  1161. 
Page  79,  line  17.  V,  p.  1866. 
Page  81,  line  18.  VI,  pp.  1916-1918. 
Page  82,  line  20.  IV,  pp.  1222,  1227. 

Page  83,  line  3.  VI,  p.  1916. 
Line  24.  Ibid.,  pp.  1978-1981. 

Page  84,  line  25.  VIII,  p.  2843. 
Page  85,  line  30.  Ibid.,  p.  2775. 
Page  87,  line  32.  V,  pp.  1513,  1514. 
Page  90,  line  28.  Ibid.,  pp.  1519-1528. 
Page  91,  line  8.  Ibid.,  p.  1589. 
Page  92,  line  9.  Ibid.,  pp.  1590,  1591. 

Line  32.  IV,  p.  1176. 
Page  93,  line  5.  Ibid.,  p.  1177. 

Line  12.  VI,  p.  2061. 

Line  14.  IV,  pp.  1153-1160. 

Line  16.  V,  p.  1540. 


Page  94,  line  7.  II,  594. 

Line  26.  Ibid.,  pp.  399,  400. 

Page  95,  line  15.  I,  p.  268. 

Page  96,  line  21.  Prelim.,  pp.  177,  178. 

Page  97,  line  15.  Congressional  Record, 

April  7,  1937,  p.  4132. 
Line  32.  V,  pp.  1534,  1535- 
Page  98,  line  14.  I,  p.  202. 

Line  30.  Jean  E.  Spielman,  op.  cit.,  p. 

239- 
Page  99,  line  12.  II,  p.  390. 
Line  19.  Ibid.,  p.  391. 
Line  29.  Ibid.,  p.  392. 

Page  100,  line  7.  Ibid.,  p.  655. 

Page  101,  line  9.  Ibid.,  pp.  402,  403. 
Line  34.  Ibid.,  p.  595. 

Page  102,  line  7.  Ibid.,  p.  383. 
Line  32.  I,  p.  79. 

CHAPTER  VI 

Page  105,  line  9.  Adam  Smith,  An  Inquiry 
into  the  Nature  and  Causes  of  the 
Wealth  of  Nations,  pp.  70,  71,  edited 
by  C.  J.  Bullock.  Harvard  Classics 
edition,  Collier  &  Son,  1909. 
Line  21.  C.  E.  Bonnett,  Employers 
Associations  in  the  United  States,  p. 
14.  The  Macmillan  Company,  N.  Y., 
1922. 

Page  107,  line  3.  VIII,  pp.  3086-3090. 

Page  no,  line  4.  Ibid.,  pp.  2954-2958. 
Line  32.  Ibid.,  pp.  2947,  2948. 

Page  112,  line  n.  Ibid.,  pp.  2948-2950. 
Page  113,  line  29.  Ibid.,  pp.  2958-2962. 

Page  114,  line  u.  Ibid.,  p.  2952. 
Line  24.  Ibid.,  p.  2952. 

Page  115,  line  28.  Ibid.,  pp.  3198,  3199. 
Page  118,  line  2.  VIII,  pp.  2881,  2882. 
Page  119,  line  3.  Ill,  pp.  981-994. 

Line  17.  Ibid.,  pp.  818,  820. 
Page  120,  line  13.  Ibid.,  p.  1007. 

Line  22.  Ibid.,  p.  1007. 

Page  121,  line  3.  Ibid.,  p.  1007. 
Page  122,  line  8.  Ibid.,  pp.  833,  834. 
Page  123,  line  3.  Ibid.,  pp.  835,  836. 


REFERENCE  NOTES 


189 


Page  125,  line  2.  Ibid.,  pp.  901,  902. 

Line  31.  Ibid.,  p.  889. 
Page  126,  line  31.  Ibid.,  p.  890. 
Page  127,  line  17.  Ibid.,  p.  945. 
Page  128,  line  3.  Ibid.,  p.  936. 

Line  20.  Ibid.,  p.  887. 
Page  129,  line  12.  II,  p.  404. 
Page  130,  line  23.  Ill,  pp.  939-941- 
Page  131,  line  17.  Ibid.,  p.  911. 

Line  22.  Ibid.,  p.  912. 
Page  132,  line  12.  Ibid.,  p.  913. 

Page  133,  line  15.  Ibid.,  pp.  915,  916. 

Line  34.  Ibid.,  p.  917. 
Page  134,  line  II.  C.  E.  Bonnett,  op.  cit., 

p.  292. 

Line  16.  Ibid.,  p.  295. 
Page  136,  line  4.  Cf.  Harry  A.  Bullis,  In- 
dustry   Must    Speak.    Published    by 
National    Association   of   Manufac- 
tures, N.  Y.,  1936,  pp.  9-13. 
Line  9.  Ibid.,  p.  13. 
Pe,ge  137,  line  22.  VI,  p.  2036. 

CHAPTER  VII 

Page  140,  line  9.  IV,  p.  1273. 

Line  31.  National  Labor  Relations 
Board  v.  Jones  &  Laughlin  Steel  Cor- 
poration, The  New  York  Times,  April 
13,  I937- 

Page  141,  line  5.  Holden  v.  Hardy,  169 
U.  S.  pp.  366,  397. 

Page  142,  line  3.  Quoted  in  National  La- 
bor Relations  Board,  Division  of 
Economic  Research,  Bulletin  No.  I, 
pp.  82,  83,  Government  Printing 
Office,  August,  1936. 
Line  1 6.  Cf.  Monthly  Labor  Review, 
Bureau  of  Labor  Statistics,  U.  S. 
Dept.  of  Labor,  Jan.,  1936,  May, 
1936,  May,  1937. 

Page  143,  line  2.  National  Labor  Relations 
Board  v.  Jones  &  Laughlin  Steel  Cor- 
poration, op.  cit. 

Line  15.  The  New  York  Herald  Tribune, 
February  10,  1937. 

Line  33.  Ibid.,  March  6,  1937. 


Page  144,  line  7.  VII,  p.  2509. 

Line  21.  The  New  York  Times,  March 

15,  1937- 
Page  145,  line  10.  Ill,  p.  883. 

Line  22.  Prelim.,  p.  47. 

Page  146,  line  15.  The  New  York  Times, 

April  14,  1937. 
Page  147,  line^.  Ibid.,  December  17, 1934. 

Line  30.  Ibid.,  May  27,  1937. 
Page  148,  line  4.  Ibid.,  May  27,  1937. 

Line  35.  Ibid.,  June  i,  1937. 
Page  149,  line  7.  The  New  York  Post,  June 

17,  1937- 

Page  150,  line  24.  Prelim.,  pp.  267,  268. 
Page  151,  line  3.  Ill,  p.  752. 

Line  13.  Ibid.,  p.  1048. 

Line  16.  IV,  p.  1341. 
Page  152,  line  7.  VIII,  pp.  2983,  2984. 
Page  153,  line  17.  Ibid.,  pp.  2995, 2996. 
Page  154,  line  n.  Ibid.,  p.  2975. 

Line  28.  II,  p.  410. 
Page  155,  line  6.  Ibid.,  pp.  410,  411. 

Line  20.  Ibid.,  p.  393. 

Line  24.  Ibid.,  p.  390. 

Line  26.  Ibid.,  p.  458. 

CHAPTER  VIII 
Page  159,  line  4.  Ill,  p.  862. 

Line  20.  C.  E.  Bonnett,  op.  cit.,  p.  80. 
Line  25.  IV,  p.  1282. 
Line  30.  Prelim.,  p.  7. 
Page  160,  line  6.  National  Labor  Rela- 
tions Board  v.  Jones  &  Laughlin  Steel 
Corporation,  op.  cit. 
Line  30.  National  Labor  Relations  Act, 

op.  cit. 

Page  161,  line  26.  National  Labor  Rela- 
tions Board,  Bulletin  No.  I,  op.  cit., 
p.  83. 
Page  162,  line  14.  Congressional  Record, 

April  7,  1937,  p.  4119. 
Page  163,  line  7.  The  New  York  Times, 

Feb.  14,  1937. 

Line  II.  Henry  D.  Lloyd,  Wealth 
against  Commonwealth  (1894),  p.  175. 
National  Home  Library  Foundation, 
Washington,  D.  C.,  1936. 


INDEX 


Adlen,  Richard,  spy,  affidavits  on,  46. 
Ailes,  A.  S.,  94,  128,  129,  154,  155. 

testimony  of,  100,  101. 
Agencies,  clients  of,  7. 

evasion  of  Social  Security  Act  by,  92, 

93- 
formation    of    company    unions    by, 

.  3°-33- 

list  of,  Appendix  A. 

making  and  faking  of  trouble  by,  95  ff. 

morals  and  ethics  of,  71  ff. 

new     technique     for     strike-breaking, 
115-118. 

number  of,  5. 

relation  to  class  war  of,  143. 

spying  on  spies  by,  84. 

spying  on  vendor  plants  by,  81-83. 

strike-breaking  by,  99,  100. 

tie-up  to  munitions  firms  of,  102,  104. 

tools  of  employers,  139  ff. 

trustification  of,  103,  104. 
Akron  Be  aeon- Journal,  editorial  of,  114, 

US- 

Akron  Law  and  Order  League,  114,  115. 
American  Federation  of  Labor,  question- 
naire of,  21,  22. 
American  Liberty  League,  26. 
"American  Way,"  the,  139  ff. 
Anderson,  Harry  W.,  testimony  of,  81. 
Andrews,  John,  71. 

and  Richard  Frankensteen,  3^4. 

Associations   of   employers,    number   of, 

105  ff. 

purpose  of,  105  ff. 
Atlantic  Production  Co.,  66,  67. 

B. 

Babson,  Roger  W.,  report  on  agencies  of, 
98. 


Barker,  Lawrence,  testimony  of,  20. 

Bennett,  Harry  H.,  146,  147. 

Blacklist,  28. 

Black  and  Decker  Electric  Co.,  strike  at, 
129,  130. 

Blankenhorn,  Heber,  5,  6. 

Blind  Ads,  64,  65. 

Bonnett,  Clarence  E.,  105. 

Brady,  Samuel  H.,  63. 

Bronson,  R.  L.,  55-57. 

Brunswick,  R.  L.,  86. 

Bullis,  Harry  A.,  134,  136. 

Burns,  William  J.,  International  Detec- 
tive Agency,  Inc.,  6. 
shadowing  of  trial  jurors  by,  84,  85. 

Burns,  W.  Sherman,  letter  of  solicitation, 
106,  107. 
testimony  of,  84,  85. 

Burnside,  R.  L.,  testimony  of,  58,  59, 
88-90. 

Butler,  System  of  Industrial  Survey,  30, 

c. 

Caldwell,  Frank  W.,  132. 

Capital  and  Labor,  strength  of,  141. 

Chrysler  Corp.,  12. 

payment    to    Corporations    Auxiliary 
Co.,  5,  76. 

Securities  Act  violation  by,  76-78. 

Citizens'    Alliance    groups,    purpose    of 

115-118. 

Clark,  Edward  S.,  testimony  of,  83. 
Class  war,  139  ff. 

indication  of,  143  ff. 

Coates,  Robert  W.,  testimony  of,  83,  84. 
Collective  bargaining,  160,  161. 

statement  of  Commission  on  Industrial 
Relations  on,  161. 


191 


I92 


INDEX 


Columbian   Stamping  and   Enameling 

Co.,  102. 
Commission    on     Industrial     Relations, 

statement  on  collective  bargaining  of, 

141,  142,  161. 

"Committees  of  citizens,"  115-118. 
Company  Unions,  formation  and  purpose 

of,  29-30. 

tools  of  employers,  161,  162. 
Corporations  Auxiliary  Co.,  6,  7-8,   12, 

23,  52,  107- 

accessory  to  Securities  Act  violation, 
76-78. 

annual  income  of,  71. 

function  of,  n,  12. 

payments  by  Chrysler  Corp.  to,  76. 

payment  of  operatives,  5. 
Cronin,  James  C.,  spy,  63. 
Grouse  Hinds  Co.,  132-133. 
Cowdrick,  E.  S.,  136,  137. 
Cunningham,  E.  T.,  testimony  of,  116, 

118. 

D. 

Dalrymple,  Sherman  H.,  beating  of,  152. 

Davison,  E.  C.,  testimony  of,  127. 

D.  G.,  spy,  39-41. 

Deming,  George  E.,  130,  131. 

Democracy,    necessity    for    in    industry, 

160,  161. 

Dudley, ,  testimony  of,  15. 

Duquesne,  29. 

E. 

Electric  Auto-Lite  Co.,  45. 
Employers'  Association  of  Akron,  107  ff. 

members    and    contributions    of,    Ap- 
pendix B. 
Employers,  belief  in  class  war  of,  143-145. 

opposition  to  collective  bargaining  of, 
141,  142. 

organization  of,  105  ff. 

F. 

Federal  Laboratories,  Inc.,  93,  102. 
Firestone  Tire  Co.,  100,  101. 
Flint  Alliance,  115. 


Foote,  Herrick,  94. 

Ford,  Henry,  statement  on  unionism  by, 
146. 

Ford  Motor  Co.,  attitude  toward  union- 
ism of,  145-148. 
1936  profit  and  loss  account  of,  148. 

Forwerck,  Charles,  affidavit  of,  60,  61. 

Foster,  Louis,  spy,  affidavit  on,  47-49. 

Foster  Service,  letter  of,  9. 

Frankensteen,  Richard,  beating  of,  147, 
148. 

his  own  account  of  the  beating,  Ap- 
pendix F. 
testimony  of,  53,  139,  140. 

— and  John  Andrews,  3. 

Fruehauf  Trailer  Co.,  case  of,  27,  28. 
Furey,  Bart,  spy,  45,  46. 

G. 

Gadd,  C.  A.,  testimony  of,  129,  130. 

General  Motors  Corp.,  162,  163. 
fake  bills  of,  78-81. 
payments     to     Pinkerton     Detective 

Agency,  6. 

purchase  of  munitions  by,  154,  155. 
shadowing  of  government  official  for, 
86-90. 

Goodyear  Tire  &  Rubber  Co.,  113  ff. 
military  training  of  guards  of,  152,  153. 
report   to   Conference   Committee  of, 
Appendix  E. 

Grabbe,  W.  H.,  101,  102. 

Gray,W.H.,  31,94,  95. 

testimony  of,  53-55. 

Green,  William,  testimony  of,  21. 

H. 

Hale,  Merle  C.,  testimony  of,  79-82. 
Harlan  County,  149. 
Haskell,  Allen  P.,  testimony  of,  8 1,  82. 
Hoffman,  Governor  H.  G.,  116. 
Holderman,  Carl,  testimony  of,  63,  95,  96. 

Homestead,  29. 
strike,  91. 

Hughes,  Chief  Justice,  140. 


INDEX 


'93 


I. 


Industrial  espionage,  destruction  of,  162, 

163. 

violation  of  Wagner  Act  by,  143. 
International  Auxiliary  Corp.,  23,  49,  92. 
Ivey,  G.  Eugene,  testimony  of,  102. 

J. 

Jennings,  Charles,  letter  of,  158,  159. 
Johnston,  Joseph  J.,  letter  of,  153,  154. 
Jones  &  Laughlin,  Labor  Board  Case, 

140,  142. 

election  of,  149. 

K. 

Keller,  K.  T.,  131,  132,  140. 

statement  of,  144. 
Killinger,  Charles,  affidavit  of,  42. 
Kuhi,  E.  M.,  testimony  of,  32-33,  52,  98. 

L. 

Labor  disputes,  causes  of,  142. 

La  Follette  Committee,  5. 

La  Follette,  Senator  R.  M.  Jr.,  9,  n,  33. 

Lake  Erie  Chemical  Co.,  93,  94,  128,  129, 

154,  155- 

gases  of,  99,  100. 

Lawson,  A.  E.,  testimony  of,  31,  32. 
Le  May,  E.  D.,  150-151. 
Lengel,  John  D.,  affidavit  of,  47-49. 
Lesley,  C.  D.,  testimony  of,  152-153. 
Letteer,  Lyle,  testimony  of,  19,  97. 
Lewis,  John  L.,  on  spy  system,  162,  163. 
Libbey-Owens  Ford  Glass  Co.,  60. 
Lichtenberger,  George,  spy,  126. 
Lionel  Manufacturing  Co.,  48. 
Lippmann,  Walter,  on   employment  of 

agencies,  143. 
Litchfield,  Paul  W.,  testimony  of,  110- 

II3- 
Lloyd,  Henry  Demarest,  on  spying,  163. 

M. 

McGrady,  Edward,  shadowing  by  Pinker- 
tons  of,  86-90. 
MacGriffin,  Edgar  E.,  102. 


Manville  Manufacturing  Co.,  93. 

strike-breaking  by,  99,  100. 
Martin,  Homer,  affidavit  of,  46. 
Martin,  William  H.,  testimony  of,  17-18, 

86-87. 

Marshall  Detective  Service  Co.,  letter  of, 
10. 

Matles,  James,  testimony  of,  127,  128. 
Memorial  Day  massacre,  148,  149. 
Military  training  of  guards  by  employers, 

ISI-IS4. 
Mohacsi,  John,  spy,  affidavit  of,  66-68. 

testimony  of,  92. 

Morse  Twist  &  Drill  Co.,  125,  126. 
Munitions  makers,  93  ff. 
Munitions,    purchase   of   by   employers, 

154,  155- 

N. 
N.R.A.,  29,  30. 

Labor  Department  inquiry,   23,    146, 
147. 

National  Association  of  Manufacturers, 

105. 

membership  of,  134. 

propaganda  activities  of,  134,  136. 

purpose  of,  134. 

National  Corporations  Service,  53,  102. 
National  Labor  Relations  Act,  143. 
National  Labor  Relations  Board,  125. 

concerning  Fruehauf  Trailer  Co.,  27,  28. 

election  by,  149. 

National  Metal  Trades  Association,  105. 

customers  of  Lake  Erie  Chemical  Co., 
128,  129. 

membership  of,  118. 

opposition  to  collective  bargaining  of, 
123-125. 

purpose  of,  1 19. 

rules  of  conduct  of,  120,  121. 

tactics  of  spies  of,  127. 

union-smashing  of,  125,  126. 

violence  of  guards  of,  129,  130. 
New   York  Herald  Tribune,  editorial  on 

collective  bargaining  of,  143. 

O. 

Open  shop,  121,  122. 
Organization,  of  employers,  105  ff. 


I94 


INDEX 


Organization  of  workers,  157  ff. 
purpose  of,  140,  141. 

Owen,  Elaine,  beating  of,  150,  151,  Ap- 
pendix H. 

P. 

Paramount    News,    suppressed    film    of, 

Appendix  G. 

Parsons,  H.  C.,  testimony  of,  107-110. 
Patterson,  George  A.,  testimony  of,  29, 62. 
Pekin  Distilling  Co.,  150. 
Perkins,  Frances,  29. 
Philco  Radio  Co.,  131. 
Pinkerton,  Robert  A.,  income  of,  73. 

testimony  of,  14-16,  89. 
Pinkerton's  National  Detective  Agency, 

6,  21,  23,  24,  56. 

annual  income  of,  72. 

clients  of,  8. 

fake  General  Motors  bills  of,  78-81. 

payments  received  from  General  Mo- 
tors, 6. 

spying  on  Corporation's  Auxiliary  by, 

83. 
shadowing  of  government  official  by, 

86-90. 
violation  of  law  by,  91-92. 

R. 

Railway  Audit  and  Inspection  Co..  6,  31, 

34,  53-55,  102. 

clients  of,  8. 

Red  Star  Milling  Co.,  10. 
Reed,  Walter,  affidavit  of,  43. 
Republic  Steel  Co.,  anti-union  policy  of, 

148,  149. 

Rice,  L.D.,  31,  54,95. 
Rigby,  Charles,  testimony  of,  55-57. 
Roberts,  Edith,  affidavit  of,  45,  46. 

Robinson,   Senator  J.  T.,  on  company 
unions,  162. 

Ross,  Dan  G.,  13. 

salary  of,  71. 

testimony  of,  64. 
Rossetter,  Asher,  60. 

testimony  of,  15. 

salary  of,  72. 


Roszel,  F.  A.,  22,  23,  44,  45. 
Rubicz,  Steve,  affidavit  of,  68,  69. 

S. 

Sayre,  Homer  D.,  tactics  toward  friends 

of  Labor  of,  131-133. 

testimony  of,  119,  121-125,  144,  145. 
Securities  and  Exchange  Act,  evasion  of, 

76-78. 
Sherman  Service,  Inc.,  6. 

correspondence  course  booklet  of,  73. 
Shults,  spy,  39-41. 

Sloan,  Alfred  P.,  Jr.,  statement  of,  144. 
Slusser,  Clifton,  testimony  of,  151,  152. 
Smith,  Adam,  105. 
Smith,  Edwin  S.,  28. 
Smith,  Hal,  on  necessity  of  spies,  145. 

Smith,  James  H.,  salary  of,  72. 
testimony  of,  II,  12,  77,  93. 

Smith,  Matthew,  testimony  of,  23. 

Social  Security  Act,  92,  93. 

Sparks,  Mayor  C.  Nelson,  114,  115. 

"Special   Conference   Committee,"   pur- 
pose of,  136-137. 
sample  report  to,  Appendix  E. 

Spies,  as  union  officials,  21-33. 

correspondence  course  booklet  of  train- 
ing for,  73-76. 

cost  to  industry  of,  6. 

definition  of,  139. 

effect  of  activity  of,  21. 

function  of,  9  ff. 

employers  argue  necessity  for,  159. 

how  defeated,  162,  163. 

instructions  to,  35,  36. 

necessity  in  class  war  of,  145. 

number  of,  6. 

Sherwood  Detective  Bureau,  116-118. 

reports  of,  17,  38-41. 

reports  on  union  members  by,  18. 

sample  reports  of,  Appendix  B,  C. 

stealing  of  union  records  by,  19. 

tapping  of  telephones  by,  20. 

technique  of  union-smashing  of,  34  ff. 

wages  of,  71. 

Spy,  "report  en  route,"  37. 
Stott,  John,  spy,  affidavits  on,  42,  43. 


INDEX 


Strikes,  causes  of,  142. 
Stringham,  L.  A.,  131,  133. 
Sugar,  Maurice,  statement  of,  146,  147. 
Summers,  Charles,  testimony  of,  150. 
Sunbeam  Electric  Co.,  anti-unionism  of, 
128. 

Supreme  Court,  decision  on  agencies  of, 

85-.  . 

decision  on  collective  bargaining  of,  142. 
decision  on  unionism  by,  140. 
decision  on  Wagner  Act,  26. 
Swope,   Gerard,   attitude  toward  Labor 
of,  132,  134. 

Sylvia,  Ferdinand,  affidavit  of,  126. 
T. 

Tear  gas,  no  sale  to  unions  of,  155. 

sales  to  employers  of,  155. 
Tennessee   Coal   Iron   &   Railroad    Co., 

150,  151. 

Thomas,  Senator  Elbert  D.,  9. 

Trade  unions,  answers  to  objections  to, 

162. 

methods  of  building,  158,  159. 

necessity  for,  157  ff. 

purpose  of,  140,  141. 
Travis,  Robert,  testimony  of,  21. 
Trusch,  Nicholas,  27. 

U. 

Union-Smashing,     Strike-Breaking     Co., 
103,  104. 
technique  of,  34  ff. 


Unionism,  defeat  of  spying  by,  157  ff. 
Unionization,  purpose  of,  140,  141. 
United  Automobile  Workers  attempt  to 

organize  Ford,  147,  148. 
U.  S.  Rubber  Reclaiming  Co.,  14-17. 

V. 

Vigilante  committees,  115-118. 
Violence,  use  of,  by  employers,  147  ff. 

W. 

Wagner  Labor  Relations  Act,  25,  26,  157, 

159,  160,  161. 
Wealth  of  Nations,  105. 
Weber,  salary  of,  72. 
Weckler,  Herman,  140. 

testimony  of,  12,  13. 
Western  Pacific  Railroad,  termination  of 

Pinkerton  service,  25. 
Wheeler,  Senator  B.  K.,  speech  by,  96, 97. 
Williams,  Roy,  affidavit  of,  52. 

testimony  concerning,  53. 
Wohlforth,  Robert,  14. 
Woodward,  L.  E.,  21. 
Workers,  way  out  for,  163. 

World-Telegram,  story  of  beating  at  Ford 
plant  of,  147,  148. 

Worthington  Pump  Co.,  47,  66,  68, 69,  92. 

Z. 

Ziegler,  Phil  E.,  testimony  of,  63. 


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LEO  HUBERMAN 

The  author  of  The  Labor  Spy  Racket  has 
already  established  a  notable  reputation  al- 
though he  is  only  thirty-four.  His  first  books, 
We,  the  People,  (1932)  and  Man's  Worldly 
Goods,  (1936)  found  a  large  reading  public 
both  in  America  and  England.  Man's  Worldly 
Goods  was  the  April  choice  of  an  English  book 
club,  with  a  first  printing  of  some  46,000  copies. 
It  was  also  the  February  choice  of  the  Book 
Union  over  here.  Louis  M.  Hacker,  Professor 
of  History  at  Teachers'  College,  Columbia 
University,  and  co-author  of  The  United 
States:  A  Graphic  History,  in  reviewing  it  for 
The  New  Republic,  wrote:  "Mr.  Huberman  is 
singularly  equipped  for  his  task;  he  is  the  pos- 
sessor of  an  amazingly  vivid  vocabulary  and 
what  amounts  to  a  real  talent  for  simplifica- 
tion." 

Mr.  Huberman  was  born  in  Newark,  New 
Jersey,  graduated  from  the  Normal  School 
there  and  taught  for  four  years  in  the  Newark 
public  schools.  He  spent  his  summers  working 
in  various  industrial  jobs.  He  has  traveled 
widely  —  from  coast  to  coast,  hitch-hiking,  in 
this  country,  to  study  local  conditions,  and  ex- 
tensively in  Europe  as  an  observer  of  industrial 
and  political  conditions.  He  studied  further 
at  Columbia  University,  the  New  School  for 
Social  Research,  the  London  School  of  Eco- 
nomics, and  at  New  York  University  (M.A., 
1937),  and  was  an  associate  editor  of  Scholas- 
tic magazine  until  he  resigned  to  devote  the 
greater  part  of  his  time  to  writing.